The Reserve Bank of India (RBI) has removed Paytm Payments Bank Ltd (PPBL) from the list of scheduled banks following the cancellation of its banking licence. The RBI said PPBL has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934. The notification was published on July 31 and later notified in the Gazette of India.
The central bank had cancelled PPBL’s banking licence in April for non-compliance with regulatory norms, stating that the bank’s affairs were being conducted in a manner detrimental to the interests of depositors.
The Delhi High Court subsequently ordered the winding up of Paytm Payments Bank.
PPBL has faced several regulatory restrictions in recent years. In March 2022, the RBI barred the bank from onboarding new customers following supervisory concerns. Further restrictions were imposed in January and February 2024, including a ban on accepting fresh deposits, credits and top-ups in customer accounts, prepaid instruments and wallets.
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