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The Reserve Bank of India (RBI) has excluded Paytm Payments Bank Limited (PPBL) from the list of scheduled banks under the Second Schedule to the Reserve Bank of India Act, 1934.
According to an RBI press release, "Paytm Payments Bank Limited was excluded from the Second Schedule vide Notification DoR.LIC.No.S3674/16.13.215/2026-27 dated July 31, 2026." The notification was published in the Gazette of India (Part III-Section 4) dated September 7, 2026. The Second Schedule to the Reserve Bank of India Act, 1934, contains the list of banks recognised as scheduled banks. The notification titled "Exclusion of 'Paytm Payments Bank Limited' from the Second Schedule to the Reserve Bank of India Act, 1934" was issued by Brij Raj, Chief General Manager. Earlier, the Delhi High Court ordered the winding up of PPBL and appointed former State Bank of India (SBI) Chief General Manager Girikumar M Nair as the Official Liquidator, the RBI said on July 28. The central bank, in an official statement, said the High Court, through orders dated July 8, 2026, and July 22, 2026, directed that PPBL be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013. The development followed the RBI's earlier action against Paytm Payments Bank Limited, including the cancellation of its banking licence with effect from the close of business on April 24, 2026. The RBI had cited serious regulatory violations and concerns over the manner in which the bank's affairs were conducted while cancelling the licence. 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 and had also noted non-compliance with conditions stipulated in its payments bank licence. The RBI had also directed that Paytm Payments Bank Limited would not undertake banking activities or any additional business with immediate effect. The latest notification formally excludes the bank from the Second Schedule to the RBI Act. (ANI)
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