In short: The Reserve Bank of India has excluded Paytm Payments Bank Limited (PPBL) from the Second Schedule of the Reserve Bank of India Act, 1934. As a result, PPBL is no longer a "scheduled bank".
What has happened?
The RBI has formally taken Paytm Payments Bank off the list of scheduled banks. The exclusion itself was made through an earlier notification dated 31 July 2026.
At the time, the RBI said the bank had not complied with norms. It also said the bank's affairs were being run in a way that harmed its depositors' interests. The Delhi High Court later ordered that the bank be wound up.
What is the Second Schedule, and what is a scheduled bank?
The Second Schedule of the Reserve Bank of India Act, 1934 is the official list of recognised banks. A bank that is included in this Schedule is called a "scheduled bank".
Being removed from the Schedule therefore means PPBL no longer has that recognised status.
How did we get here? A timeline
| Date | Development |
|---|---|
| 11 March 2022 | The RBI directed PPBL to stop onboarding new customers, citing "material supervisory concerns". It also told the bank to appoint an IT audit firm for a comprehensive audit of its systems. |
| 31 January 2024 and 16 February 2024 | The RBI imposed further business restrictions. These included a bar on any more deposits, credits or top-ups in existing customer accounts, prepaid instruments and wallets. |
| April 2026 | The RBI cancelled PPBL's banking licence. |
| Later | The Delhi High Court ordered the winding up of PPBL. |
| 31 July 2026 | The notification excluding PPBL from the Second Schedule was issued. |
| 7 October 2026 | The RBI's notification and statement on the exclusion were reported. |
Who is affected?
- PPBL itself: It has lost its licence and is in winding-up. It no longer has scheduled-bank status.
- Former customers and depositors: The RBI's stated reason for cancelling the licence was the interest of depositors. The sources do not describe how any payouts or claims will work, so this article does not cover that.
- Paytm, the associate company: PPBL is an associate of the fintech firm Paytm, which is promoted by Vijay Shekhar Sharma. The sources describe only the bank's licence and Schedule status, not any change to Paytm's other businesses.
What should readers do?
If you once held an account, wallet or prepaid instrument with PPBL, rely on official communications from the RBI and from the winding-up process for any instructions.
Frequently asked questions
Is Paytm Payments Bank still a scheduled bank?
No. The RBI has excluded it from the Second Schedule of the Reserve Bank of India Act, 1934. A scheduled bank is simply a bank included in that Schedule.
Does this mean the Paytm app has shut down?
The sources do not say so. They concern PPBL, the bank, and its status under the RBI Act. They say nothing about the operations of Paytm, the separate fintech company.
Sources
- Economic Times: RBI removes Paytm bank from scheduled bank list
- India Today: RBI removes Paytm Payments Bank from Scheduled List after license cancellation