Paul Flowers - nicknamed the 'Crystal Methodist' - was originally suspended in 2013 after the former Co-Op Bank chairman from Bradford was secretly filmed paying for illegal substances.
He was later convicted of being in possession of cocaine, crystal meth and ketamine and admitted using cocaine for 18 months.
Flowers, now 66, admitted a charge of 'seriously impairing his mission, witness or integrity of the Church' during an internal disciplinary hearing last month.
He was handed a ban which means he can no longer lead religious services or use the title 'reverend.' He was removed from the list of ministers following an appeals period.
Flowers stepped down as chairman of the bank following the scandal four years ago. At the time, he was fined £400 by magistrates and confessed he had 'sinned'.