Exclusion of “Paytm Payments Bank Limited” from the Second Schedule to the Reserve Bank of India Act, 1934
Reported by Reserve Bank of India, not nibnow. We are not the publisher of this story, only the source is.
The exclusion removes Paytm Payments Bank from the list of scheduled banks, which could affect its ability to offer banking services and impact its customers and partners.
Paytm Payments Bank Limited has been formally excluded from the Second Schedule to the Reserve Bank of India Act, 1934. This regulatory action was taken through a notification dated July 31, 2026, and was subsequently published in the Gazette of India on September 07, 2026. The exclusion signifies a significant change in the legal status of the payments bank under the central bank's regulatory framework. The notification, issued by the Chief General Manager, outlines the specific legal basis for this decision. This move impacts the operational and regulatory environment for Paytm Payments Bank, potentially altering its business activities and compliance requirements under the existing banking laws.
The Second Schedule of the RBI Act lists banks that are authorized to operate as scheduled banks under RBI regulation, granting them certain privileges and oversight.
- •Potential legal or regulatory appeals by Paytm Payments Bank
- •Updates on how the exclusion will affect Paytm's banking products and customer accounts
- •Any further RBI actions affecting other payment banks