Nearly two years after operations were halted, over ₹800 crore of customer funds remain stuck in Paytm Payments Bank, CNBC-TV18 has learnt from people directly familiar with the matter.
Of the total amount, around half is locked in frozen accounts, while another ₹400 crore remains unclaimed, according to sources. There has been no meaningful drawdown in these balances over the past year, despite customers being given repeated opportunities to withdraw or transfer funds.
Before regulatory action began, the bank held deposits exceeding ₹5,500 crore. It also had a large customer base of about 35 crore accounts, of which only around 10–10.5 crore were active. The rest were largely dormant, frozen, or flagged as mule accounts, a key compliance concern.
Sources said the Reserve Bank of India had pushed the Paytm group to actively communicate with users, including sending alerts and reminders to facilitate withdrawals. The central bank also allowed extended timelines to ensure an orderly migration of customers before the eventual shutdown of operations.
The regulatory process took longer than initially expected. The RBI had internally targeted licence cancellation by March 2025, but the quasi-judicial nature of the process, involving hearings and procedural safeguards, extended the timeline. Final action was sequenced to ensure customers had sufficient time to move their funds, CNBC-TV18 has learnt.
Despite the passage of time and regulatory nudges, a significant portion of deposits remains stuck, indicating limited progress in the clean-up of balances.
People familiar with the regulatory thinking told CNBC-TV18 that past compliance lapses could influence future regulatory approvals for Paytm. However, the group has not sought any fresh prepaid payment instrument (PPI) or wallet licence from the RBI so far.
Paytm’s wallet, which had a high market share at the time of the regulatory crackdown, was housed within the payments bank. The company has also not made any request to move the wallet business back to its parent, One 97 Communications, it is understood.