RBI removes Paytm Payments Bank from list of scheduled banks
The central bank said PPBL lost scheduled-bank status after its licence was cancelled for non-compliance and conduct harmful to depositors.
- On Wednesday, The Reserve Bank announced the removal of Paytm Payments Bank Limited from the list of scheduled banks, formally reflecting the lender's changed regulatory status following its license cancellation earlier this year.
- The Reserve Bank cancelled the banking licence for PPBL in April due to non-compliance with norms, claiming the bank's affairs were conducted in a manner detrimental to the interests of its depositors.
- Published in the Gazette on September 7, a formal notification confirmed the exclusion, while the Delhi High Court has separately ordered that Paytm Payments Bank Ltd be wound up.
- Amid "material supervisory concerns," The Reserve Bank directed PPBL to stop onboarding new customers on March 11, 2022, and later imposed further business restrictions on deposits and wallets in early 2024.
- The Second Schedule of the RBI Act serves as the official list of recognized banks that meet the central bank's financial standards and receive special operational privileges, which PPBL no longer holds.
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Meanwhile, the Reserve Bank has officially removed Paytm Payments Bank Ltd (PPBL), an associate firm of Vijay Shekhar Sharma-promoted fintech firm Paytm, from the list of recognised scheduled banks following the cancellation of its banking licence.
The Reserve Bank of India has taken another major step against Paytm Payments Bank. The RBI has removed the bank from its list of scheduled banks. This action comes at a time when the bank has already faced several regulatory restrictions and has had its banking license revoked.
Paytm Payments Bank Delisted From RBI’s Scheduled Banks List After Licence Cancellation
The Reserve Bank of India has formally excluded Paytm Payments Bank from the Second Schedule of the RBI Act, months after cancelling its banking licence. The bank is now being wound up. Paytm Payments Bank Delisted From RBI’s Scheduled Banks List After Licence Cancellation.
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