The Reserve Bank of India (RBI) has officially excluded Paytm Payments Bank Limited (PPBL) from the Second Schedule of the Reserve Bank of India Act, 1934, effectively removing it from the list of scheduled banks.
The RBI said in a notification dated October 7 that PPBL had been excluded from the Second Schedule through a notification issued on July 31, 2026, which was published in the Gazette of India on September 7.
A bank included in the Second Schedule of the RBI Act is known as a scheduled bank and is subject to the regulatory framework applicable to scheduled banks.
The move follows the RBI’s cancellation of PPBL’s banking licence earlier this year over regulatory non-compliance. The central bank had said the affairs of the bank were conducted in a manner detrimental to the interests of its depositors.
PPBL had been facing regulatory action for several years. In March 2022, the RBI barred the bank from onboarding new customers following what it called “material supervisory concerns” and directed it to appoint an IT audit firm to conduct a comprehensive audit of its IT systems.
On January 31 and February 16, 2024, the RBI imposed further business restrictions on PPBL, including a bar on accepting further deposits, credits or top-ups in customer accounts, prepaid instruments and wallets.
The Delhi High Court later ordered the winding up of Paytm Payments Bank. PPBL is an associate company of fintech firm Paytm, promoted by Vijay Shekhar Sharma.