RBI to remove Paytm Payments Bank from Scheduled Bank list

Representative image. Photo: Special arrangement

The Reserve Bank has officially removed Paytm Payments Bank Ltd (PPBL) from the list of recognized scheduled banks following the cancellation of its banking licence.

In April this year, the Reserve Bank of India (RBI) canceled the banking license granted to PPBL for non-compliance, saying the bank’s affairs were being conducted in a manner prejudicial to the interests of its depositors.

Later, the Delhi High Court ordered the liquidation of PPBL.

“Paytm Payments Bank Limited has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934…,” the central bank said in a statement on Wednesday (Oct 7, 2026).

A notification in this regard was published on July 31 and published in the Gazette of India in September.

The Second List of the RBI Act is the official list of recognized banks that meet the central bank’s financial standards and receive special operating privileges. “Scheduled bank” means a bank included in the Second Schedule.

PPBL, an affiliate of Vijay Shekhar Sharma-backed fintech firm Paytm, has come under the regulatory scanner several times before, including in March 2022 when the central bank barred it from accepting new customers.

In revoking the licence, the RBI said the affairs of the bank were being conducted in a manner prejudicial to its own interests as well as to its depositors.

Earlier, PPBL was ordered to stop accepting new customers with effect from March 11, 2022 due to “serious supervisory concerns” observed in the bank.

The bank was also ordered to commission an IT audit firm to conduct a comprehensive system audit of its IT system.

Thereafter, on 31 January 2024 and 16 February 2024, certain business restrictions were also imposed on the bank, including a ban on any further deposits/credits/recharges to existing customer accounts, prepaid instruments and wallets.

Published – 8 Oct 2026 11:12 AM IST