RBI Removes Paytm Payments Bank From Scheduled Banks List After Licence Cancellation

(MENAFN- IANS) New Delhi, Oct 7 (IANS) The Reserve Bank of India (RBI) on Wednesday announced that it has removed Paytm Payments Bank Limited (PPBL) from the list of scheduled banks, formally reflecting the lender's changed regulatory status following the cancellation of its banking licence earlier this year.

In a notification, the central bank said Paytm Payments Bank has been excluded from the Second Schedule of the Reserve Bank of India Act, 1934, which contains the list of banks recognised as scheduled banks. The notification was issued on July 31 and later published in the Gazette of India in September.

"Paytm Payments Bank Limited has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification LIC.S3674/16.13.215/2026-27 dated July 31, 2026 and published in the Gazette of India (Part III - Section 4) dated September 07, 2026," the central bank said in its official statement.

The development follows the RBI's decision in April to cancel the banking licence of Paytm Payments Bank, citing persistent non-compliance with regulatory requirements.

The central bank had said the bank's affairs were being conducted in a manner detrimental to the interests of both the institution and its depositors.

Paytm Payments Bank had been under regulatory scrutiny for several years. In March 2022, the RBI barred the lender from onboarding new customers after identifying what it described as material supervisory concerns. The bank was also directed to appoint an external IT audit firm to conduct a comprehensive review of its technology systems.

Regulatory restrictions intensified in early 2024, when the RBI prohibited the bank from accepting fresh deposits, credits and top-ups in customer accounts, prepaid instruments and wallets, citing ongoing compliance concerns.

The latest notification comes after the Delhi High Court ordered the winding up of Paytm Payments Bank. The lender, an associate of fintech major Paytm promoted by Vijay Shekhar Sharma, had faced repeated supervisory actions and operational curbs before ultimately losing its banking licence.

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