RBI Excludes Paytm Payments Bank From Scheduled List
The Reserve Bank of India has officially excluded Paytm Payments Bank from the Second Schedule to the RBI Act following court orders to wind up the entity.
In a major regulatory move, the Reserve Bank of India (RBI) has officially removed Paytm Payments Bank Limited (PPBL) from the list of scheduled banks under the Second Schedule to the Reserve Bank of India Act, 1934. This decision follows a series of legal and regulatory setbacks for the fintech giant.
The Official Notification
According to an official press release from the central bank, the exclusion was formalized via a notification dated July 31, 2026. The details of this exclusion were subsequently published in the Gazette of India on September 7, 2026. The notification, issued by Chief General Manager Brij Raj, marks a significant step in the formal removal of the entity from the recognized list of scheduled banks.
Court-Ordered Winding Up
The move comes in the wake of significant judicial intervention. The Delhi High Court had previously issued orders on July 8 and July 22, 2026, directing that PPBL be wound up. This winding-up process is being conducted under the provisions of the Banking Regulation Act, 1949, in conjunction with the Companies Act, 2013.
To manage this process, the court has appointed Girikumar M Nair, a former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator for the bank.
History of Regulatory Action
The exclusion is the culmination of a turbulent period for the payments bank. The RBI had previously taken stringent action against the entity, which included:
- Licence Cancellation: The bank's banking licence was cancelled, effective from the close of business on April 24, 2026.
- Regulatory Violations: The central bank cited serious regulatory violations and concerns regarding how the bank's affairs were being managed.
- Depositor Interests: The RBI noted that the bank's operations were being conducted in a manner detrimental to the interests of both the bank and its depositors.
- Operational Restrictions: The bank was explicitly directed to cease all banking activities and any additional business with immediate effect.
The central bank also highlighted non-compliance with the specific conditions stipulated in the bank's original payments bank licence, leading to the current phase of liquidation and formal exclusion from the scheduled banks list.