- The Reserve Bank of India (RBI) has removed Paytm Payments Bank Limited from the list of scheduled banks included in the Second Schedule of the Reserve Bank of India Act, 1934.
- The RBI took this decision via a notification issued on July 31, 2026. This action followed the cancellation of Paytm Payments Bank's banking license and the Delhi High Court's order for the bank's liquidation under applicable laws.
- Prior to this, the RBI had expressed concerns regarding several serious regulatory irregularities at Paytm Payments Bank. Deficiencies were also observed in the bank's operations and its compliance with the stipulated conditions governing its functioning as a payments bank.
- According to the RBI, these irregularities could have adversely affected both the bank and the interests of its depositors. For these reasons, multiple regulatory actions were taken against the bank, ultimately leading to its removal from the list of scheduled banks.
Tags:
Economics
