The Reserve Bank of India has officially struck Paytm Payments Bank Limited from its Second Schedule list, following the earlier cancellation of its banking license in April 2026. This administrative update follows the ongoing winding-up process. Investors should note that the parent entity, One97 Communications, has previously clarified it has no material financial exposure to the defunct payments bank.
The Reserve Bank of India (RBI) issued a notification on October 7, 2026, formally removing Paytm Payments Bank Limited (PPBL) from the Second Schedule of the Reserve Bank of India Act, 1934. This action marks the final regulatory step in the cessation of the bank's status as a scheduled commercial entity.
The exclusion follows the cancellation of the bank’s operating license on April 24, 2026. At that time, the central bank cited systematic non-compliance with operational guidelines and practices that it determined were detrimental to the interests of depositors. Subsequent to the license revocation, the Delhi High Court initiated the legal winding-up process for the bank and appointed an official liquidator to oversee the closure.
For shareholders and followers of the fintech sector, this development highlights a clear separation between the now-defunct payments bank and the listed entity, One97 Communications. One97 Communications has maintained in its exchange filings that it holds no material business or financial exposure to the payments bank, which operated as an associate entity. The core fintech services offered by the parent company, including UPI payments and merchant services, remain operational and independent of the payments bank structure.
Since the regulatory actions against the payments bank began, One97 Communications has focused on its primary operations. In the financial year 2026, the parent company reported a net profit of ₹552 crore, indicating a recovery in its financial performance as it moved forward from the regulatory pressures associated with its former payments bank affiliate.
While the official gazette notification concludes the bank's status as a scheduled entity, the broader fintech landscape remains under strict regulatory watch. The RBI continues to emphasize the importance of robust IT infrastructure, governance, and regulatory adherence for all digital finance players. Investors typically track these regulatory developments to understand the compliance environment, but for One97 Communications, the primary monitorable remains the execution of its core business and ongoing financial performance following the resolution of this historical regulatory overhang.