Summary of this article
RBI removed Paytm Payments Bank from the scheduled banks list.
The move follows licence cancellation and Delhi High Court winding-up order.
PPBL customers face no new restrictions from this notification.
The Reserve Bank of India (RBI) has removed Paytm Payments Bank (PPBL) from the list of scheduled banks, marking another formal step towards the closure of the payments bank.
The RBI notified the removal from the Second Schedule of the Reserve Bank of India Act, 1934. The notification was issued on July 31, 2026, and was published in the Gazette of India in September.
The move comes after the RBI cancelled PPBL’s banking licence in April 2026 over regulatory violations. The RBI had also raised concerns about the way the bank was being managed and its impact on depositors.
Why Has Paytm Payments Bank Been Removed As A Scheduled Bank
The Second Schedule of the Reserve Bank of India Act, 1934, contains the names of banks that qualify as scheduled banks. Banks on this list must meet the financial conditions prescribed under the law and receive certain facilities from the RBI.
With the cancellation of PPBL’s banking licence, its exclusion from the schedule is a regulatory consequence of the decision. The Delhi High Court had also ordered the winding up of PPBL.
How Did The Action Against PPBL Unfold
The regulatory action unfolded over a period of more than two years. The first major restriction came in March 2022, when PPBL was barred from onboarding new customers. In January 2024, the RBI imposed further restrictions on the bank’s operations.
These were followed by additional directions in February 2024. Finally, the banking licence was eventually cancelled in April 2026, after RBI found that the bank’s affairs were being conducted in a manner detrimental to its interests and those of its depositors.
The subsequent court order for winding up PPBL and its removal from the RBI’s scheduled banks list are further steps in the process of ending the banking entity’s operations.
How Will It Impact Paytm Customers
The latest RBI notification does not create any new restriction on Paytm customers by itself. Most of the important operational restrictions on PPBL were imposed earlier.
Customers who had balances with PPBL have been subject to the restrictions announced by the RBI in 2024. The bank was not permitted to accept fresh deposits or credits into accounts and wallets after the specified deadlines.
For users of Paytm’s wider app and services, it is important to distinguish the payments bank from Paytm’s other businesses. Paytm is a fintech platform, while PPBL was the separate banking entity that operated under a payments bank licence.
The RBI’s latest action is therefore focused on PPBL’s status as a bank. It does not, by itself, mean that every service available through the Paytm app has been shut down.
