Another Setback for Paytm From RBI

The Reserve Bank of India (RBI) has removed Paytm Payments Bank Limited (PPBL) from the list of scheduled banks following the cancellation of its banking licence. The central bank had cancelled PPBL’s licence over regulatory violations, citing concerns about the bank’s operations and the interests of depositors.

Following the licence cancellation, the Delhi High Court also directed the closure of Paytm Payments Bank. The RBI has now excluded PPBL from the Second Schedule of the Reserve Bank of India Act, 1934, through a recent notification. The central bank said the notification was issued on July 31 and subsequently published in the Gazette in September.

The Second Schedule of the RBI Act contains the official list of banks recognised as scheduled banks after meeting the prescribed financial and regulatory criteria. With PPBL’s removal from the schedule, the bank is no longer part of the RBI’s recognised scheduled banking list.