RBI Removes Paytm Payments Bank from Scheduled Banks List
The Reserve Bank of India (RBI) has officially removed Paytm Payments Bank Ltd (PPBL) from the list of recognised scheduled banks under the Second Schedule of the RBI Act, 1934. The move follows the cancellation of the bank’s licence in April 2026 over regulatory non-compliance and concerns that its affairs were being conducted in a manner detrimental to the interests of depositors.
The RBI’s notification, dated July 31, 2026 and subsequently published in the Gazette of India on September 7, formally excludes PPBL from the scheduled banks list. A scheduled bank is one included in the Second Schedule of the RBI Act and subject to the regulatory framework applicable to such institutions.
PPBL had faced regulatory restrictions for several years. In March 2022, the RBI barred it from onboarding new customers, while further restrictions in January and February 2024 prevented additional deposits, credits and wallet top-ups. The Delhi High Court subsequently ordered the winding up of PPBL.
The development represents another formal step in the closure of Paytm Payments Bank and underscores the RBI’s emphasis on regulatory compliance and depositor protection.
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