Paytm News: RBI Exclusion, Share Dip, UPI MDR Rumours
RBI’s removal of Paytm Payments Bank from the scheduled banks list and a 10% intraday drop in Paytm’s shares sparked a surge in search interest, while rumours of a deferred UPI merchant discount rate added further market uncertainty.
14 Oct 2026, 17:36 UTC
RBI removes Paytm Payments Bank from scheduled banks list
On 7 October 2026 the Reserve Bank of India formally excluded Paytm Payments Bank Limited (PPBL) from the Second Schedule of the RBI Act, the list that recognises banks as “scheduled” and grants them certain regulatory privileges. The exclusion followed the April 24 2026 licence cancellation for non‑compliance. The RBI’s notification, dated 31 July 2026, was published in the Gazette of India on 7 September 2026 and made the exclusion effective on 7 October 2026. RBI statement
Investor reaction: Paytm shares slide
One 97 Communications, Paytm’s parent company, saw its shares tumble 10 % intraday on 8 October 2026, hitting a low of ₹1,558.80 before recovering to roughly ₹1,640. The dip reflected market uncertainty over the bank’s regulatory future and the potential impact of the new UPI merchant discount rate. Market news article
Unconfirmed UPI MDR deferment rumours
Some traders and industry bodies reportedly asked the Finance Ministry and NPCI to postpone the rollout of the new UPI merchant discount rate (MDR) from 15 October 2026 to January 2027. No official confirmation has been issued, and the MDR is still expected to take effect on 15 October 2026. Source on MDR
Implications for Paytm
- Loss of scheduled‑bank status removes certain regulatory safeguards and could affect depositors’ confidence.
- Potential uplift in merchant revenue once MDR is implemented, but also higher compliance costs.
- Goldman Sachs analysts view the upcoming 30 % UPI market‑share cap deadline (31 December 2026) as a material event that could level competition and lift Paytm’s valuation.
Key dates at a glance
| Date | Event |
|---|---|
| 24 Apr 2026 | RBI cancels PPBL licence for non‑compliance |
| 7 Oct 2026 | PPBL excluded from Second Schedule |
| 8 Oct 2026 | Paytm shares dip 10 % intraday |
| 15 Oct 2026 | Expected MDR rollout (rumoured deferment) |
| 31 Dec 2026 | UPI providers deadline to meet 30 % market‑share cap |
For a deeper dive into the regulatory proceedings, see Paytm Payments Bank removed from RBI Second Schedule after licence revocation and winding up.
Sources & further reading
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