Paytm Payments Bank removed from RBI Second Schedule after licence revocation and winding up

Regulatory timeline from licence loss to scheduled bank removal

Paytm was a top trending search term in India on 8 October 2026, observed in the past-24h trends, as the Reserve Bank of India confirmed the exclusion of Paytm Payments Bank Limited from the Second Schedule to the RBI Act, 1934. The public confirmation on 8 October 2026 followed a notification issued earlier in the year.

The sequence began with the banking licence. The RBI withdrew PPBL’s payments bank licence with effect from the close of business on 24 April 2026, citing serious regulatory violations and non-compliance with licence conditions. The central bank said the bank’s affairs were conducted in a manner detrimental to depositors and directed it to stop banking activities immediately.

Judicial winding up followed. The Delhi High Court ordered PPBL to be wound up and appointed an official liquidator. RBI’s statement refers to High Court orders of 8 July 2026 and 22 July 2026 directing winding up under the Banking Regulation Act, 1949 read with the Companies Act, 2013.

The formal scheduled-bank change was notified later. RBI issued Notification DoR.LIC.No.S3674/16.13.215/2026-27 on 31 July 2026 excluding PPBL from the Second Schedule. The notification was published in the Gazette of India Part III-Section 4 on 7 September 2026. The Hindu BusinessLine report dated 8 October 2026 summarises the move.

What removal from the Second Schedule means

The Second Schedule lists banks recognised as scheduled banks. Scheduled status enables access to RBI facilities, maintenance of cash reserve ratio requirements and coverage under deposit insurance.

Exclusion means PPBL is no longer recognised as a scheduled bank. It is a legal status change that follows licence cancellation and court-ordered winding up. It does not by itself shut down the broader Paytm app ecosystem.

• Licence cancelled: effective close of business 24 April 2026
• Winding up directed: 8 July 2026 and reiterated 22 July 2026
• RBI exclusion notification: 31 July 2026
• Gazette publication: 7 September 2026
• Public confirmation: 8 October 2026

Customers and services distinction

The removal applies only to the banking licence and scheduled-bank status of PPBL. Paytm’s UPI, wallet, merchant payments and other fintech offerings operate under separate regulatory permissions and are not covered by the Second Schedule exclusion.

Depositors with PPBL are impacted by liquidation. Assets are under the appointed liquidator, which can affect withdrawal timelines and claim processes. Users should rely on official RBI and liquidator communications for updates.

For the fintech sector, the case illustrates strict enforcement of licence conditions and coordination between RBI action and court-ordered winding up, while underscoring the difference between Paytm Payments Bank as a regulated bank entity and Paytm as a wider payments and financial services platform.