Paytm shares tumble 10% after RBI removes Paytm Payments Bank from scheduled banks list

Shares of One 97 Communications, the parent company of Paytm, plunged up to 10% in early trade on Thursday after the Reserve Bank of India (RBI) removed Paytm Payments Bank Limited (PPBL) from the list of scheduled banks.

Weighed down by the development, the Paytm share price fell to ₹1,560.60 on the BSE, down 10% from the previous close of ₹1,734. At the time of reporting, the fintech stock was trading at ₹1,598.45, down 7.82%, with a market capitalisation of ₹1.03 lakh crore.

Meanwhile, the broader equity market was also under selling pressure, with the BSE benchmark Sensex trading at 72,207.60 and the NSE Nifty50 at 22,450.55.

RBI removes Paytm Payments Bank from scheduled banks list

The RBI on Wednesday said PPBL had been excluded from the Second Schedule to the RBI Act, 1934, through an order dated July 31, 2026. The order was published in the Gazette of India on September 7.

The order, titled “Exclusion of ‘Paytm Payments Bank Limited’ from the Second Schedule to the Reserve Bank of India Act, 1934”, was issued by Brij Raj, Chief General Manager, RBI.

The latest action comes after a series of regulatory measures against PPBL.

On July 28, the RBI said the Delhi High Court had ordered the winding up of Paytm Payments Bank and appointed former State Bank of India Chief General Manager Girikumar M Nair as the Official Liquidator.

The court, through orders dated July 8 and July 22, directed that PPBL be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013, according to the RBI.

The development follows the central bank’s earlier cancellation of PPBL’s banking licence with effect from the close of business on April 24, 2026. The RBI had cited serious regulatory violations and concerns over the manner in which the bank’s affairs were conducted while cancelling the licence.

Paytm, however, had maintained that there would be no direct financial impact from the move, as the fintech major had no exposure to, or any material business arrangements with, PPBL. The payments bank is a joint venture between Vijay Shekhar Sharma, founder and chief executive officer of Paytm, who holds a 51% stake, and One97 Communications Ltd, which owns the remaining 49%.

According to the company, it had already impaired its investment in PPBL as of March 31, 2024, and therefore the RBI’s decision does not affect its financials.