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Business
RBI Delists Paytm Payments Bank from Scheduled Banks List
✍️ Asianet Newsable
🗓 08 Oct 2026, 07:32 AM
👁 11
The Reserve Bank of India has removed Paytm Payments Bank from its Second Schedule of scheduled banks, effective immediately, citing compliance concerns.
The Reserve Bank of India (RBI) has announced that Paytm Payments Bank will no longer be listed as a scheduled bank under the Second Schedule of the Banking Regulation Act. The decision, effective immediately, follows a review of the bank’s compliance with regulatory norms.
Scheduled banks are required to maintain a minimum cash reserve ratio and have access to RBI’s facilities for liquidity management. By removing Paytm Payments Bank from the list, the RBI signals that the institution has not met the necessary standards to qualify for scheduled bank status.
The move may impact Paytm Payments Bank’s ability to borrow from the RBI and to offer certain services that are reserved for scheduled banks. It also raises questions about the bank’s future operations and regulatory oversight.
Paytm Payments Bank, launched by One97 Communications, has been a prominent digital banking player in India. The RBI’s decision comes amid increased scrutiny of digital banks and their adherence to prudential norms.
Regulators have previously highlighted gaps in the bank’s risk management and compliance framework. The delisting is part of a broader effort to ensure that all scheduled banks meet the stringent requirements set by the RBI.
Scheduled banks are required to maintain a minimum cash reserve ratio and have access to RBI’s facilities for liquidity management. By removing Paytm Payments Bank from the list, the RBI signals that the institution has not met the necessary standards to qualify for scheduled bank status.
The move may impact Paytm Payments Bank’s ability to borrow from the RBI and to offer certain services that are reserved for scheduled banks. It also raises questions about the bank’s future operations and regulatory oversight.
Paytm Payments Bank, launched by One97 Communications, has been a prominent digital banking player in India. The RBI’s decision comes amid increased scrutiny of digital banks and their adherence to prudential norms.
Regulators have previously highlighted gaps in the bank’s risk management and compliance framework. The delisting is part of a broader effort to ensure that all scheduled banks meet the stringent requirements set by the RBI.