RBI removes Paytm Payments Bank from scheduled banks list: What it means for customers?

The Reserve Bank of India on Wednesday announced the removal of Paytm Payments Bank Ltd (PPBL) from its list of scheduled banks, months after cancelling its banking licence and following a Delhi High Court order to wind up the lender.

When it cancelled PPBL’s licence in April, the RBI said the bank had sufficient liquidity to repay its entire deposit liability during winding up. The assurance related to repayment of deposits as part of that process.

Paytm, operated by One97 Communications, has separately clarified that its services are unaffected by the action against PPBL. Its UPI services operate through a multi-bank arrangement and the company has said it ended material business arrangements with the payments bank in March 2024.