Paytm Payments Bank removed from the RBI Act's list of scheduled banks

The Reserve Bank of India has excluded Paytm Payments Bank Limited from the Second Schedule to the Reserve Bank of India Act, 1934. The exclusion was made by Notification No. DoR.LIC.No.S3674/16.13.215/2026-27, dated July 31, 2026, and was published in the Gazette of India (Part III, Section 4) on September 7, 2026. RBI announced the exclusion in a press release on October 7, 2026, naming only the notification and the gazette publication as its basis, without giving further reasons.

The Second Schedule to the RBI Act is the statutory list of entities classified as "scheduled banks" — banks that RBI has found to satisfy its prescribed criteria on paid-up capital and reserves, and which are accordingly entitled to certain privileges, such as access to RBI's refinance and clearing facilities, while also remaining subject to specific obligations and supervision under the Act. Being named in the Second Schedule is therefore a formal legal status conferred and withdrawn by RBI notification, distinct from a bank's banking licence itself. With this notification taking effect, Paytm Payments Bank Limited ceases, going forward, to be reckoned as a scheduled bank for the purposes of the RBI Act, 1934, and the privileges and obligations that attach specifically to that status under the Act no longer apply to it.