The Reserve Bank of India (RBI) has announced that the Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL). The court passed the order on July 8, 2026, which was later read with another order dated July 22, 2026. The winding-up process will take place under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013.
Official Liquidator Appointed
The Delhi High Court has appointed Girikumar M. Nair, former Chief General Manager (CGM) of the State Bank of India (SBI), as the Official Liquidator of Paytm Payments Bank.
According to RBI, the Official Liquidator will exercise all the powers provided under the Banking Regulation Act and the Companies Act. From July 8, 2026, the liquidator has taken over all the powers that were earlier held by the Board of Directors of Paytm Payments Bank.
Why Was Paytm Payments Bank Closed?
In April 2026, RBI cancelled the banking licence of Paytm Payments Bank after finding that the bank had repeatedly failed to comply with regulatory requirements. The central bank said the bank’s affairs were being conducted in a manner that was harmful to both the bank and its depositors.
After cancelling the licence, RBI informed that it would approach the Delhi High Court to seek the winding up of the bank, which has now been approved by the court.
Earlier Regulatory Actions Against PPBL
Paytm Payments Bank had been under RBI’s regulatory scrutiny for several years. In March 2022, RBI stopped the bank from onboarding new customers after identifying serious supervisory concerns. The bank was also directed to appoint an independent IT audit firm to conduct a detailed review of its technology systems.
Later, on January 31, 2024, and February 16, 2024, RBI imposed further restrictions on the bank. It barred PPBL from accepting fresh deposits, credits, or top-ups in customer savings accounts, wallets, and prepaid payment instruments.
Background
Paytm Payments Bank is an associate company of Paytm, the fintech firm founded by Vijay Shekhar Sharma. Over the past few years, the bank faced multiple regulatory actions by RBI due to compliance and supervisory issues. The Delhi High Court’s order to wind up the bank marks the final stage in the regulatory action initiated by the central bank.
