Paytm

India's SEBI issued a show-cause notice on August 11, 2026 to Paytm CEO Vijay Shekhar Sharma and CFO Madhur Deora concerning the timing of the company's December 6, 2023 disclosure that it would curtail small (sub-Rs 50,000) personal loans following RBI's tightened digital lending rules. Paytm shares fell roughly 12% in the eight trading days before the announcement and a further 20% the day after it was made, prompting scrutiny of whether the disclosure was delayed relative to when the decision was made. Paytm said it does not expect a financial impact from the notice and has 14 days to respond.

The Delhi High Court, acting on an RBI petition, ordered the winding up of Paytm Payments Bank Ltd (PPBL) through orders dated July 8 and July 22, 2026, appointing Girikumar M. Nair, a former SBI Chief General Manager, as liquidator with full board powers under the Banking Regulation Act. RBI said PPBL had sufficient liquidity to repay all deposit liabilities. The order formally closes out the bank whose license RBI had already cancelled, citing a persistent pattern of non-compliance detrimental to depositors' and the public interest.

On April 24, 2025, the Reserve Bank of India revoked Paytm Payments Bank's license, citing affairs conducted 'detrimental to the interest of depositors' and a 'consistent pattern of non-adherence to regulatory norms' despite multiple prior warnings. The action followed earlier restrictions banning new deposits and users. The regulatory action sent shockwaves through India's fintech sector.

Paytm laid off over 3,500 sales employees between December 2023 and March 2024 after RBI restricted its payments bank subsidiary from onboarding new customers. Despite founder Vijay Shekhar Sharma's January 2024 promise of no layoffs, headcount dropped from 40,000+ to 36,500. In 2024, Paytm accounted for 49% of total Indian startup layoffs. Employees alleged HR pushed 'voluntary' resignations to avoid severance.