RBI removes Paytm Payments Bank from scheduled banks list

The Reserve Bank of India (RBI) has removed Paytm Payments Bank Limited (PPBL) from the official list of scheduled banks, formalizing the regulatory action taken against the digital payments company earlier this year.

The central bank had cancelled PPBL's banking licence in April citing persistent non-compliance with regulatory requirements. Scheduled bank status provides access to RBI facilities and is a prerequisite for operating as a bank in India.

Paytm Payments Bank, a subsidiary of digital payments giant Paytm, had faced regulatory scrutiny over several compliance failures. The RBI's action marks a significant setback for the company's banking operations and reflects the central bank's stringent approach to enforcing regulatory standards in the fintech sector.

The removal from the scheduled banks list effectively ends PPBL's status as a regulated banking entity. This development is likely to impact Paytm's financial services offerings and represents a notable instance of the RBI taking decisive action against non-compliant entities in India's rapidly growing digital payments landscape.