Why Did RBI Remove Paytm Payments Bank From Scheduled Banks? Check Complete List Of The Bank

Paytm Payments Bank: In a big move, the Reserve Bank of India has now formally removed Paytm Payments Bank from its Second Schedule to the Reserve Bank of India Act, 1934. This marks a major step in the bank’s regulatory closure.

This move by the central bank follows the cancellation of Paytm’s banking licence earlier in 2026, and the important process of winding up this case. Back in the days, Paytm Payments Bank faced regulatory action over compliance and supervisory concerns.

Removal of Paytm Bank from the scheduled bank list means the bank is no longer recognised by RBI as a listed bank. Anything that happened to your money while the account was active will not be the central bank’s problem. You will have to deal with it yourself. That is why the RBI already warned about Paytm Payments Bank.

These steps are usually taken to narrow down cyber threats and other banking issues, and close the loopholes. This action relates specifically to Paytm Payments Bank and does not mean all Paytm services have stopped. Paytm’s other businesses continue through its multi-bank model.

Also Read: Who is the Owner of Paytm?

Why Did RBI Remove Paytm Payments Bank?

The RBI has removed the Paytm Payments Bank from its scheduled banks after cancelling its banking licence. Paytm’s banking licence was called off over regulatory and non-compliance. 

The central bank had in the past raised concerns about the bank’s operations. As the regulatory body, they projected that Paytm Payments Bank could harm depositors’ interests.

Earlier, the bank was also stopped from adding new customers and accepting fresh deposits or top-ups. After the licence was cancelled, the Delhi High Court ordered the bank’s case to quickly tracked and winded up. RBI removing Paytm from the list is not a sudden move, it is a long-pending step that should have been taken.

Paytm Payments Bank’s banking journey has reached its formal end, with RBI completing another important part of the process.

What Are Scheduled Banks According To RBI?

• A scheduled bank is a bank included in the Second Schedule of the RBI Act, 1934.

• To be included, a bank must meet the conditions prescribed under the law.

• Scheduled banks operate within the RBI’s regulatory framework.

• They are eligible for certain facilities available under the RBI Act.

• Paytm Payments Bank was added to the Second Schedule in 2021.

• Its exclusion now follows the cancellation of its banking licence and winding-up process.

Complete List Of Scheduled Commercial Banks In India

The Indian banking system is a mix of all the public sector giants, private lenders, payments banks and foreign institutions.

The big names are State Bank of India, Bank of Baroda and Punjab National Bank to HDFC Bank, ICICI Bank and Axis Bank. These are the important banks in the scheduled list that fuel the country’s financial system.

Payments banks such as Airtel Payments Bank and India Post Payments Bank also feature in this category. Foreign names like Standard Chartered and HSBC add an international touch to India’s scheduled banking landscape.