The Reserve Bank of India (RBI) has removed Paytm Payments Bank from its list of scheduled banks, a significant blow to the fintech entity. This decision comes amidst ongoing regulatory scrutiny and follows previous restrictions on the bank's operations.
Removed
Scheduled Bank Status
August 2020: Granted→Removed
⏳ Time Machine
How today’s news fits into the bigger picture
August 2020
Paytm Payments Bank Gets RBI Nod for Operating as Scheduled Bank
The Reserve Bank of India granted Paytm Payments Bank the status of a scheduled bank, allowing it to expand operations and participate in government-run financial inclusion schemes. This was a major milestone for the then-young fintech entity.
March 2025
RBI Halts New Customer Onboarding for Paytm Payments Bank
Citing supervisory concerns, the RBI directed Paytm Payments Bank to stop onboarding new customers immediately. This was the first major public action, signaling serious regulatory issues within the bank.
July 2025
Deposit Limit Imposed on Paytm Payments Bank
Following continued non-compliance, the RBI reportedly imposed a deposit limit of ₹2 lakh per account on Paytm Payments Bank, further restricting its operational scope and indicating deepening concerns over its financial health and risk management.
September 2026
Paytm Payments Bank Board Reconstituted Amidst Pressure
Under mounting pressure, Paytm Payments Bank reportedly reconstituted its board of directors, bringing in independent members with banking and regulatory experience, in an attempt to address the RBI's concerns and strengthen its governance.
Today
RBI officially removed Paytm Payments Bank from its list of scheduled banks.
What happens next?
Paytm Payments Bank will need to intensely focus on compliance and may seek reinstatement, a process that could take several years.
The Reserve Bank of India (RBI) has officially delisted Paytm Payments Bank from the Second Schedule of the RBI Act, 1934. This means Paytm Payments Bank no longer holds the 'scheduled bank' status, which offers privileges like borrowing from the RBI's repo window and participating in clearing house operations. The move is a direct consequence of the persistent non-compliance and supervisory concerns identified by the regulator over the past year. While Paytm has been working to address issues, this delisting signals a stricter stance from the central bank, further limiting the bank's operational capabilities and potentially impacting its customer base.
💭 If you're wondering…
No, your existing Paytm wallet should continue to function as usual. The RBI's action primarily affects Paytm Payments Bank's ability to operate as a scheduled bank and its participation in interbank systems, not necessarily the basic wallet services. However, long-term impacts on the broader Paytm ecosystem bear watching.
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