Paytm Payments Bank Delisted From RBI’s Scheduled Banks List After Licence Cancellation
The Reserve Bank of India has formally excluded Paytm Payments Bank from the Second Schedule of the RBI Act, months after cancelling its banking licence. The bank is now being wound up.
The Reserve Bank of India (RBI) on Wednesday announced that it has removed Paytm Payments Bank Limited (PPBL) from the list of scheduled banks, reflecting the lender's changed regulatory status after its banking licence was cancelled earlier this year. According to the central bank's notification, the lender stands excluded from the Second Schedule, which lists the banks recognised as scheduled banks. The step closes out one of the last formal links between the lender and the regulated banking system, following the April cancellation of its licence and a court-ordered winding up.
What The Notification Says
The RBI said the exclusion was made through a notification dated July 31, 2026, which was published in the Gazette of India on September 7, 2026. The public statement came on Wednesday, October 7. RBI Raises Repo Rate by 25 Basis Points to 5.50% Amid Rising Inflation Pressures.
The Delhi High Court has since directed the liquidation of the bank.
What Scheduled Status Meant
The Second Schedule lists banks that meet the criteria set by the central bank, and banks on it are eligible for certain facilities and privileges under the RBI framework.
Paytm Payments Bank was added to the schedule in December 2021, a move the bank said would let it take part in government and corporate bids, primary auctions and repo operations. RBI MPC Decision Today: Sanjay Malhotra to Announce Repo Rate Amid Inflation, Crude Oil Above USD 100.
The delisting is largely a formality. The bank has not been allowed to carry on banking business since its licence was cancelled.
How The Licence Was Cancelled
The RBI cancelled the licence by an order dated April 24, 2026, and the bank ceased banking business from the close of that day. Its registration with the Deposit Insurance and Credit Guarantee Corporation was cancelled from the same date.
The RBI said the bank's affairs were conducted in a manner detrimental to its own and its depositors' interests, and that it had breached the conditions of its Payments Bank licence.
Depositors And Paytm Services
The RBI said at the time that the bank had enough liquidity to repay its entire deposit liability upon winding up.
Parent company One 97 Communications said its core business would not be affected, as services had already moved to partner banks. The company has said the Paytm app, UPI, QR, Soundbox, card machines and Payment Gateway continue to operate without interruption.
Years Of Regulatory Action
The RBI had directed the bank to stop onboarding new customers in March 2022. In January 2024, it barred deposits and top-ups in customer accounts, wallets, FASTags and NCMC cards after February 29, 2024, citing compliance and material supervisory concerns.
The regulator had also fined the bank in October 2023 for non-compliance, including violations of know-your-customer norms.
(The above story first appeared on LatestLY on Oct 07, 2026 11:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
