The Reserve Bank of India has officially removed Paytm Payments Bank Ltd (PPBL) from the list of recognised scheduled banks.
The RBI said PPBL has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934. A notification for the exclusion was issued on July 31, 2026, and was later published in the Gazette of India.
The move follows the RBI’s decision to cancel Paytm Payments Bank’s banking licence in April 2026 over non-compliance with regulatory requirements. The central bank had said the affairs of the bank were conducted in a manner detrimental to the interests of the bank and its depositors.
The Delhi High Court subsequently ordered the winding up of Paytm Payments Bank, putting the lender into the formal closure process.
PPBL had faced regulatory restrictions for several years. In March 2022, the RBI barred the bank from onboarding new customers after identifying supervisory concerns. Further restrictions were imposed in January and February 2024, including limits on fresh deposits, credits and top-ups in customer accounts, prepaid instruments and wallets.
The latest action formally removes PPBL from the scheduled banks list. Paytm’s UPI and other app-based payment services operate separately from the payments bank, and Paytm has said these services remain operational.
