Paytm Payments Bank removed from list of scheduled banks
RBI has taken Paytm Payments Bank off the Second Schedule of the RBI Act, so it is no longer a "scheduled bank", by a notification dated July 31, 2026.
Official title: Exclusion of “Paytm Payments Bank Limited” from the Second Schedule to the Reserve Bank of India Act, 1934 · Press Release 2026-2027/1273
What happened
RBI has excluded Paytm Payments Bank Limited from the Second Schedule to the Reserve Bank of India Act, 1934. The notification is dated July 31, 2026, and was published in the Gazette of India on September 7, 2026.
The Second Schedule is the official list of "scheduled banks". Being on it lets a bank use RBI facilities such as borrowing from RBI, and comes with duties such as keeping a share of deposits with RBI. Being removed means Paytm Payments Bank no longer has that status.
The release gives no reasons and says nothing about the bank's licence or customers. For background, in early 2024 RBI barred Paytm Payments Bank from taking fresh deposits or top-ups into accounts, wallets and FASTags after March 15, 2024, citing persistent non-compliance. The bank has been winding down its business since.
What it means for you
This release itself changes nothing for Paytm app users, whose UPI payments now run through other partner banks. If you still have money in a Paytm Payments Bank account or wallet, contact the bank about withdrawing or transferring it, since it has not been allowed to accept new money since March 2024.
What it means for businesses
Merchants who still had settlement accounts at Paytm Payments Bank should have moved them already; this confirms the bank's shrinking role. Paytm's parent company and its other businesses are not named in this release.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.