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The Reserve Bank has officially removed Paytm Payments Bank from the list of recognised scheduled banks following the cancellation of its banking licence. In April this year, the Reserve Bank of India (RBI) had cancelled the banking licence issued to PPBL for non-compliance with norms, saying affairs of the bank were conducted in a manner detrimental to the interest of its depositors. Later, the Delhi High Court ordered that Paytm Payments Bank Ltd (PPBL) be wound up. "Paytm Payments Bank Limited has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934...," the central bank said in a statement on Wednesday. A notification in this regard was published on July 31 and published in the Gazette of India in September. The Second Schedule of the RBI Act is the official list of recognised banks that meet the central bank's financial standards and get special operational privileges. 'Scheduled bank' means a bank included in the Second Schedule. PPBL, an associate
Global brokerage firm Jefferies has reiterated its "Buy" rating on Paytm (One 97 Communications Ltd), stating that the company's growth engine and profitability will remain intact despite regulatory action on its associate entity Paytm Payments Bank Ltd (PPBL). The company has maintained its price target of Rs 1,350, implying an 18 per cent upside. In its latest report, Jefferies stated that Paytm had already undertaken comprehensive structural changes over the past two years, following the regulator's 2024 restrictions on PPBL. These include shutting down the wallet business tied to the bank, migrating UPI handles to other partner banks, terminating inter-company agreements, and writing off its investment in the banking entity. Post the central bank's action, PPBL's board was reset, with a new chief executive being brought in, the brokerage firm noted. With these structural changes already complete, the brokerage said the licence cancellation itself has a low incremental impact on