The banking regulator, RBI, has taken major action against Paytm Payments Bank Limited (PPBL). The central bank had already cancelled its license and has now removed it from the list of scheduled banks included in the Second Schedule of the RBI Act. The RBI stated that the notification regarding this was published in the Gazette on September 7, 2026. This move is being described as the final nail in the coffin for Paytm Payments Bank, effectively ending any possibility of the bank's revival.

It is worth noting that the Second Schedule of the RBI Act lists banks recognized as "scheduled banks." This notification was issued under the signature of Brij Raj, Chief General Manager at the RBI.

**Delhi High Court had already ordered the bank's closure**

This action against Paytm Payments Bank comes at a time when the Delhi High Court has already ordered the bank's closure—specifically, its winding up.

The RBI stated on July 28 that the Delhi High Court, through its orders dated July 8 and July 22, 2026, had directed the winding up of PPBL. This action was taken under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013.

The High Court has appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator for this process.

**RBI had already cancelled the banking license**

RBI's action against Paytm Payments Bank had already commenced prior to this. The central bank had cancelled PPBL's banking license effective from the close of business on April 24, 2026.

The RBI had cited serious regulatory violations as the reason for cancelling the license. According to the central bank, the bank's operations were being conducted in a manner detrimental to the interests of the bank and its depositors. Furthermore, the conditions stipulated in the payments bank license had not been adhered to.

At that time, the RBI had also barred Paytm Payments Bank from undertaking banking activities or any additional business with immediate effect.

**Name Removed from the Second Schedule**

Now, with its exclusion from the Second Schedule of the RBI Act, Paytm Payments Bank has undergone another formal change in its regulatory status.

This means that Paytm Payments Bank no longer features in the list that recognizes scheduled banks. This move follows the Delhi High Court's winding-up order and the earlier cancellation of its banking license.

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