Paytm Payments Bank Loses Scheduled Status as RBI Tightens Compliance
What Happened
On October 7, 2026, the Reserve Bank of India (RBI) formally removed Paytm Payments Bank Ltd (PPBL) from the Second Schedule of the RBI Act, 1934. This follows the cancellation of its banking licence in April 2026 for regulatory non‑compliance and conduct deemed harmful to depositors’ interests. The Delhi High Court has also ordered the winding up of PPBL, ending its status as a scheduled bank.
Key Takeaways
The move underscores RBI’s strict enforcement of compliance standards in India’s fintech sector. Customers must rely on court‑mandated processes for settlement, while Paytm faces reputational and operational challenges in restructuring its financial services arm.