Paytm Shares fell up to 10% on Thursday, following the Reserve Bank of India (RBI) withdrawal of Paytm Payments Bank Limited (PPBL) from the list of scheduled banks which added to the regulatory overhang around the payments bank.

Key Highlights

• Paytm Shares tumbled by 10% on the day RBI took Paytm Payments Bank off its list of scheduled banks.
• Paytm said that the RBI move will not impact their financial operations in any direct way.

The Paytm share price has closed at Rs 1,560.60 on BSE, losing 10% from its day's previous closing price of Rs 1,734. As of the time of the report, the stock price stood at Rs 1,598.45, down from the previous day by 7.82%, leading to a market capitalisation of Rs 1.03 lakh crores for One 97 Communications, the Paytm parent company.

RBI Removes Paytm Payments Bank From Scheduled Banks List

PPBL was removed from the Second Schedule to the RBI Act, 1934 by an order dated July 31, 2026 issued by the RBI. This order was later published in the Gazette of India on 7th September.

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

The new move comes in the wake of a slew of regulatory action against PPBL.

Paytm Shares Fall as PPBL Faces Further Regulatory Action

The RBI had stated that on July 28, the Delhi High Court directed the winding up of Paytm Payments Bank and appointed the former State Bank of India Chief General Manager, Girikumar M Nair as Official Liquidator.

The Delhi High Court, on July 8 and July 22, ordered the winding up of PPBL under the Banking Regulation Act, 1949, along with the Companies Act, 2013.

Previously, the RBI had cancelled PPBL's banking licence with effect from the close of business on April 24, 2026. The central bank had been pointing to serious breaches of regulations and the way the bank conducted its business.

Paytm Says RBI Action Has No Direct Financial Impact

PPBL's business was hit by the regulatory crackdowns, but Paytm has insisted that it will have no direct financial impact on the fintech company.

Paytm claimed that it had no exposure to, or any material business arrangement with, PPBL. The company also said it had already impaired investment in payments bank as of March 31, 2024.

Also Read: Paytm Reports Rs 2,194 Cr Revenue, Rs 225 Cr Profit in Q3 FY26

Paytm Shares Trade Lower Amid Broader Market Pressure

The drop in Paytm shares was also driven by the overall selling pressure in domestic shares. The BSE benchmark Sensex closed at 72,207.60 at the time of reporting while the NSE Nifty50 was at 22,450.55.

With the latest action of RBI on PPBL, it becomes more of a regulatory development in Paytm's journey towards transition since the earlier cancellation of its payments bank licence.

Paytm, however, has claimed that the actions taken under PPBL have “no material direct financial effect” on the payments bank. Investors are, however, closely watching regulatory developments around the payments bank and their implications for Paytm.