The Reserve Bank of India (RBI) has removed Paytm Payments Bank Limited (PPBL), a subsidiary of fintech giant Paytm, from the list of scheduled banks. The latest decision officially confirms the change in its regulatory status, following the cancellation of PPBL's banking license earlier this year.

The RBI clarified in a notification that Paytm Payments Bank has been excluded from the Second Schedule of the Reserve Bank of India Act, 1934. The list usually includes details of banks that are recognized as scheduled banks. The notification, issued on July 31, was published in the Gazette of India on September 7.

The RBI had cancelled the license of Paytm Payments Bank in April this year for repeated violations of regulatory norms. At that time, the central bank had made strong comments that the company's activities were detrimental to the interests of depositors.

Paytm Payments Bank has been under close supervision of the RBI for the past few years. In March 2022, the RBI, which had identified several deficiencies, had banned the bank from accepting new customers. It had also ordered the appointment of an independent firm for a comprehensive IT audit. However, as violations of regulations continued, it imposed complete restrictions on accepting new deposits and top-ups in customer accounts, wallets and prepaid instruments earlier this year.

It is a subsidiary of Vijay Shekhar Sharma-promoted Paytm. The bank finally lost its license in the wake of a series of regulatory actions and operational restrictions. The Delhi High Court also ordered the closure of Paytm Payments Bank, which brought its operations to a complete standstill. The process has been officially completed with the latest notification.