Investors question if Paytm Payments Bank can thrive without regulator’s trust. The Reserve Bank of India’s ban on deposit or credit transactions has frozen the bank. Paytm can switch fintech customers to another institution but the ban signals regulatory concerns. The RBI’s ban follows persistent non-compliances and material supervisory concerns. It also mandates termination of accounts of One 97 Communications and Paytm Payments Services. Confidence in Paytm’s mainstream business and banking partners may be affected. Paytm’s goal to turn profitable may be delayed. The investment case for Paytm weakens.