Last updated: November 2, 2026 · By Sanket Goyal
Looking for Paytm Payments Bank alternatives? Here is the short version. Paytm Payments Bank no longer exists as a working bank: the RBI cancelled its banking licence on April 24, 2026, and the Delhi High Court ordered it to be wound up in July 2026. For UPI you can keep using the Paytm app (it now runs through partner banks) or any other UPI app; for a zero-balance account, FASTag, wallet or metro card, you need a new provider.
We first published this guide in February 2024, right after the RBI’s original crackdown. A lot has changed since then, so I’ve rewritten it from scratch with the 2026 facts, what happened to each Paytm Payments Bank service, and the replacements I’d pick today.
What happened to Paytm Payments Bank: the full timeline
This didn’t happen overnight. It played out over four years.
| Date | What happened |
|---|---|
| March 11, 2022 | RBI told the bank to stop onboarding new customers |
| January 31, 2024 | RBI barred new deposits, credits and top-ups into accounts, wallets, FASTags and NCMC cards |
| March 14, 2024 | NPCI approved the Paytm app as a third-party UPI app with four partner banks |
| March 15, 2024 | Final cut-off for credits and top-ups (extended from February 29, 2024) |
| April 24, 2026 | RBI cancelled the banking licence |
| July 8 and 22, 2026 | Delhi High Court orders directed the bank to be wound up and appointed an official liquidator |
| July 31, 2026 | Bank removed from the RBI’s list of scheduled banks |
When the RBI cancelled the licence, it gave four reasons in its official notice. The bank’s affairs were run in a way that hurt depositors. The general character of its management was against depositors’ and the public interest. No useful purpose would be served by letting it continue. And it failed to meet the conditions of its payments bank licence.
The RBI also said one thing worth repeating for anyone with money still stuck there: the bank has enough liquidity to repay its entire deposit liability on winding up.
What happened to your Paytm wallet, FASTag, UPI and account
People mix up two different companies here, and it causes most of the panic. Paytm Payments Bank was the bank. The Paytm app is run by a separate company. The bank is gone; the app is not.
UPI on the Paytm app: still works
In March 2024, NPCI approved the Paytm app as a third-party UPI app working with Axis Bank, HDFC Bank, State Bank of India and YES Bank. Older @paytm handles were routed through YES Bank, and users were moved to new handles such as @ptaxis, @pthdfc, @ptsbi and @ptyes. If your UPI on Paytm is linked to an account at another bank, nothing about the winding up stops it.
My advice: open the app, check which bank account and UPI ID you’re actually using, and make sure it isn’t a Paytm Payments Bank account.
Paytm Wallet: no top-ups since March 2024, balance is part of the winding up
The wallet was issued by Paytm Payments Bank, so it went down with the bank. Top-ups stopped after March 15, 2024. According to the bank’s own notice, every depositor’s claim, including unused wallet balances, is treated as already filed in the winding-up case. You don’t need to submit a fresh claim, and the bank says a largely automated refund process is being prepared.
Paytm FASTag: get a new one
Paytm Payments Bank FASTags could not be recharged after March 15, 2024. If you still have one stuck to your windscreen, it’s dead weight. Buy a FASTag from another issuing bank and remove the old sticker so the toll plaza doesn’t read the wrong tag. Any leftover balance on the old tag falls under the same winding-up process as wallet balances.
Savings account and NCMC card
Savings account balances and National Common Mobility Card balances are also covered by the “claim deemed filed” rule. Keep your old statements, registered mobile number and KYC details handy, because you’ll need to match them when payouts begin. The bank’s app is no longer available, so updates come only through its official website notices.
| Service | Status in 2026 | What to do |
|---|---|---|
| UPI on the Paytm app | Works through partner banks | Check your linked bank and UPI ID |
| Paytm Wallet (old PPBL wallet) | Frozen, part of winding up | Wait for the official refund process |
| Paytm FASTag | Cannot be recharged | Buy a FASTag from another bank |
| PPBL savings account | Bank is being wound up | Keep statements, wait for payout |
| NCMC card | No top-ups | Switch to another metro or transit card |
The best Paytm Payments Bank alternatives in 2026
There’s no single replacement, because people used Paytm Payments Bank for different jobs. So I’ve grouped the alternatives by what you actually need.
1. Another payments bank (closest like-for-like)
After Paytm’s exit, India has five payments banks left:
- Airtel Payments Bank: works well if you already use an Airtel number and like doing everything in one app.
- India Post Payments Bank: backed by the Department of Posts, with doorstep service through postmen. Good for parents and grandparents in smaller towns.
- Fino Payments Bank: has a large network of local merchant points. Note that in December 2025 the RBI gave it in-principle approval to convert into a small finance bank, so its product range may change.
- Jio Payments Bank: linked to the Jio ecosystem.
- NSDL Payments Bank: smaller, but a regulated option.
All payments banks follow the same basic rules: deposits are capped at ₹2 lakh per customer and they can’t give loans or credit cards. Interest rates and charges change often, so check the bank’s own rates page before you open an account. I’ve deliberately not listed rates here because old numbers are how this topic misleads people.
2. A zero-balance basic savings account at a regular bank
Honestly, this is what I’d pick for most people. Every bank offers a Basic Savings Bank Deposit Account (BSBDA) with no minimum balance requirement. You get a full bank, no ₹2 lakh cap, and the option to grow into loans or fixed deposits later. Picture a college student who just needs a place for a scholarship and UPI payments: a BSBDA does that job without any of the payments bank limits.
3. Any UPI app for everyday payments
If you only used Paytm for scanning QR codes, you don’t need a new bank at all. Link your existing bank account to the Paytm app’s new UPI handle or to any other UPI app. For help finding your UPI ID in another popular app, see how to find your UPI ID on Google Pay.
4. A FASTag from another issuer
Most large banks and several payments banks issue FASTags. Pick the bank where you already hold an account, so auto-recharge is simple. A delivery driver doing intercity runs, for example, is better off with a FASTag that tops up from the same account his salary lands in.
5. A different wallet or prepaid card
If you liked a wallet for small spends, several regulated banks and payment companies still issue prepaid wallets. Check that the issuer is RBI-authorised and that full KYC is available, so you aren’t stuck with low limits.
How to pick the right alternative in two minutes
Ask yourself what you used Paytm Payments Bank for, then match it:
| What you used it for | Best replacement |
|---|---|
| Scanning QR codes and paying friends | Paytm app with partner-bank UPI, or any UPI app |
| Zero-balance savings | BSBDA at a regular bank, or another payments bank |
| Toll payments | New FASTag from another bank |
| Wallet for small spends | RBI-authorised wallet with full KYC |
| Metro travel | Your city’s transit card or another bank’s NCMC card |
One more lesson from this whole saga, and it applies well beyond Paytm: don’t keep all your money in one app or one institution. The same thinking applies to crypto platforms, which I cover in what happens if a crypto exchange gets hacked. And with banking apps tied to your phone number, protecting that number matters too: see my guide on how to prevent SIM swapping.
Watch out for refund scams
Whenever a bank shuts down, fraudsters show up offering to “speed up” your refund. They’ll call, send links or ask for your OTP. Don’t fall for it. Per the bank’s notice, depositors don’t need to file a fresh claim, so anyone asking you to pay a fee or share an OTP for a Paytm Payments Bank refund is lying. Updates come only through the bank’s official website and the official liquidator’s notices.
FAQ
Is Paytm Payments Bank closed in 2026?
Yes. The RBI cancelled its banking licence with effect from the close of business on April 24, 2026, and the Delhi High Court ordered it to be wound up in July 2026, appointing an official liquidator.
Will I get my Paytm wallet or Paytm Payments Bank balance back?
The RBI has said the bank has enough liquidity to repay its entire deposit liability. Depositors with balances in savings accounts, wallets, FASTags or NCMC cards are treated as having already filed their claim, so no fresh claim is needed. The bank says the refund process is being designed and details will be published on its official website.
Can I still use UPI on the Paytm app?
Yes. Since March 2024 the Paytm app has run UPI as a third-party app through Axis Bank, HDFC Bank, State Bank of India and YES Bank. It works as long as it’s linked to an account at another bank, not a Paytm Payments Bank account.
What should I do with my old Paytm FASTag?
Replace it. Paytm Payments Bank FASTags cannot be recharged, so buy a new FASTag from another bank and remove the old one from your windscreen.
Which is the best alternative to Paytm Payments Bank?
For everyday UPI, any UPI app linked to a regular bank. For a zero-balance account, a Basic Savings Bank Deposit Account at a regular bank, or one of the five remaining payments banks: Airtel, India Post, Fino, Jio or NSDL.
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