The development follows the cancellation of PPBL's banking licence by the RBI with effect from the close of business on 24 April 2026. The central bank had cited regulatory violations, concerns relating to depositor interest and governance, and non-compliance with licensing conditions.

Following the licence cancellation, PPBL's board approved the winding-up of the payments bank. One 97 Communications had said the development would have no financial or business impact on the company, as it had no exposure to PPBL or material business arrangements with the entity. The company had also said its investment in PPBL was fully impaired as of 31 March 2024.

One 97 Communications had further said that its Paytm app, UPI, payment gateway, QR, Soundbox and Paytm Money services would continue to operate without interruption as they were not dependent on PPBL.

The company had also stated that PPBL operated as a separate entity, with no board or management overlap with One 97 Communications. Upon the winding-up order becoming effective, PPBL was to cease to be an associate company of One 97 Communications.

One 97 Communications operates Paytm, a digital payments and financial services platform offering merchant payments, financial services distribution, lending, insurance and wealth management products.

The digital payments and financial services company reported a consolidated net profit of Rs 220 crore in Q1 FY27, up 78.86% YoY and 20.22% QoQ. Revenue from operations rose 27.63% YoY and 8.13% QoQ to Rs 2,448 crore in the quarter ended 30 June 2026. EBITDA surged 181.94% YoY and 53.79% QoQ to Rs 203 crore, while EBITDA margin expanded to 8% from 4% in Q1 FY26 and 6% in Q4 FY26.