Paytm Payments Bank Removed from RBI's Scheduled Bank List

RBI has officially removed Paytm Payments Bank from its Scheduled Bank list, effective July 31, 2026.

Here's what happened: RBI has formally removed Paytm Payments Bank Limited from the Second Schedule to the Reserve Bank of India Act, 1934, stripping it of its Scheduled Bank status.. The exclusion was notified vide Notification DoR.LIC.No.S3674/16.13.215/2026-27 dated July 31, 2026, and published in the Gazette of India (Part III – Section 4) on September 7, 2026 — meaning it is already in force.. Removal from the Second Schedule means Paytm Payments Bank no longer carries the regulatory standing of a Scheduled Bank under Indian law, which affects its access to certain RBI facilities and its standing in the banking system..

What you should do: If you hold a savings account or wallet balance with Paytm Payments Bank, move your funds to a scheduled bank as soon as possible — DICGC deposit insurance of up to ₹5 lakh per depositor may still apply, but verify this directly with your branch or the DICGC website (dicgc.org.in).. Check any linked auto-pay mandates, FASTag accounts, or recurring payments tied to Paytm Payments Bank and update them to an active scheduled bank to avoid payment failures.. If you have an unresolved grievance with Paytm Payments Bank, file it immediately on the RBI CMS portal at sachet.rbi.org.in or contact the RBI Ombudsman — do not wait, as the bank's ability to resolve complaints may be further limited going forward..

This change directly affects customers who still hold active savings accounts, wallet balances, FASTag accounts, or linked mandates with Paytm Payments Bank Limited. Customers using Paytm UPI through a different underlying bank (such as Axis Bank or SBI) are not affected by this notification. Anyone with money or active services inside Paytm Payments Bank itself should treat this as an urgent signal to migrate their accounts and update their payment instruments.