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RBI Strips Paytm Bank of Scheduled Status
8 Oct
Summary
- PPBL was removed from the Second Schedule of the RBI Act, 1934.
- This exclusion follows earlier cancellation of PPBL's banking license.
- Regulatory actions against PPBL date back to March 2022.
The Reserve Bank of India (RBI) has officially removed Paytm Payments Bank Limited (PPBL) from the Second Schedule of the RBI Act, 1934. This action effectively strips PPBL of its status as a scheduled bank.
The exclusion was formalized through a notification dated October 7, 2026, with the relevant gazette publication on September 7. Banks listed in the Second Schedule are subject to specific regulatory frameworks.
This latest regulatory move by the RBI follows the earlier cancellation of PPBL's banking license. The central bank had previously stated that PPBL's operations were conducted in a manner detrimental to the interests of its depositors.
PPBL has been under regulatory scrutiny for several years. In March 2022, the RBI prohibited the bank from acquiring new customers due to significant supervisory concerns. Further restrictions imposed in January and February 2024 barred PPBL from accepting new deposits, credits, or top-ups. The Delhi High Court subsequently ordered the winding up of Paytm Payments Bank, an associate of the fintech firm Paytm.
