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Paytm Payments Bank added to RBI Second Schedule

Current · Source: Reserve Bank of India · RBI/2021-22/109 · issued 07 Oct 2021 · ~1 min read
Quick answerRBI has officially included Paytm Payments Bank Limited in the Second Schedule of the RBI Act, 1934, granting it scheduled bank status. This means it now enjoys the same regulatory privileges and obligations as other scheduled commercial banks.
The rule, in the simplest words
How it plays out — a real example

Rohit, a senior relationship manager at HDFC Bank in Mumbai, receives a request from a corporate client to pay a supplier whose account is with Paytm Payments Bank. Because Paytm is now a scheduled bank, Rohit can route the payment through the normal clearing system, record the exposure in the bank’s tracker, and feel confident that the transaction follows the same rules as with any other scheduled bank.

What changed

Paytm Payments Bank Limited was added to the Second Schedule of the RBI Act, 1934, via a notification dated September 6, 2021, published in the Gazette of India on October 2-8, 2021. This formal recognition elevates its status to a scheduled bank.

What it means for you

For banks and lenders, this means Paytm Payments Bank is now a full-fledged scheduled bank, eligible for central bank facilities like liquidity support and clearing services. It also must maintain CRR and SLR, and is subject to RBI's prudential norms. This could increase competition in retail banking and payments.

What you must do

Who it affects

All scheduled commercial banks, Paytm Payments Bank Limited, RBI's regulatory and supervisory departments

❓ Common questions

What does inclusion in the Second Schedule mean for Paytm Payments Bank?

It means the bank is now a scheduled bank under the RBI Act, 1934, entitling it to borrow from the RBI at the bank rate and access clearing house facilities, while also being required to maintain CRR and SLR.

When did this inclusion take effect?

The notification was issued on September 6, 2021, and published in the Gazette of India during October 2-8, 2021. The RBI circular communicating this was dated October 7, 2021.

Does this change affect other banks' operations?

Yes, other scheduled commercial banks must now treat Paytm Payments Bank as a scheduled bank for regulatory reporting, interbank transactions, and risk management purposes.

📜 Read the original circular — full text as issued by RBI
RBI/2021-22/109 DOR.RET.REC.58/12.07.160/2021-22 October 07, 2021 All Scheduled Commercial Banks Madam/Sir Inclusion of “Paytm Payments Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934 We advise that “Paytm Payments Bank Limited” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide notification DoR.LIC.No.S926/16.03.006/2021-22 dated September 06, 2021 and published in the Gazette of India (Part III - Section 4) dated October 02-October 08, 2021. Yours faithfully (Sibo Nekhini) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/109 · issued 07 Oct 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Review exposure limits and counterparty risk assessments for dealings with Paytm Payments Bank.
💻 IT / Systems
  • Update internal systems to recognize Paytm Payments Bank as a scheduled bank for interbank transactions.
📜 Compliance
  • Ensure compliance with any revised reporting requirements for transactions with scheduled banks.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All scheduled commercial banks, Paytm Payments Bank Limited, RBI's regulatory and supervisory departments), your first concrete step on “Paytm Payments Bank added to RBI Second Schedule” is: “Update internal systems to recognize Paytm Payments Bank as a scheduled bank for interbank transactions.” (RBI issued this 07 Oct 2021).

  1. Circular: RBI/2021-22/109 -- Paytm Payments Bank added to RBI Second Schedule
  2. Issued: 07 Oct 2021
  3. Action required: Update internal systems to recognize Paytm Payments Bank as a scheduled bank for interbank transactions.
  4. Action required: Review exposure limits and counterparty risk assessments for dealings with Paytm Payments Bank.
  5. Action required: Ensure compliance with any revised reporting requirements for transactions with scheduled banks.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12176&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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