New Delhi: The Delhi High Court has ordered the winding up of Paytm Payments Bank Ltd (PPBL), the Reserve Bank of India (RBI) said on Tuesday.
This came months after the RBI revoked the bank’s licence over regulatory violations.
PPBL’s banking licence had been cancelled by the RBI in April 2026, citing persistent non-compliance with regulatory norms. At the time, the RBI said the bank’s affairs were being conducted in a manner detrimental to the interests of its depositors and announced that it would move the Delhi High Court for its winding up.
“By an Order dated July 08, 2026 read with the Order dated July 22, 2026, the Hon’ble High Court of Delhi has ordered that PPBL be wound up under the provisions of the Banking Regulations Act, 1949 read with the provisions of the Companies Act, 2013,” the central bank said in a statement on Tuesday.
Girikumar M Nair, former chief general manager of the State Bank of India has been appointed by the High Court has as the official liquidator of PPBL.
The court has authorised the official liquidator to exercise all powers prescribed under the Banking Regulation Act, 1949, along with the applicable provisions of the Companies Act, 2013, the RBI said.
Under the Court’s order, the official liquidator has been exercising all the powers of PPBL’s board with effect from July 8, 2026, the central bank further said.
An associate of Vijay Shekhar Sharma-led fintech company Paytm, PPBL had faced repeated regulatory action over the past few years.
The RBI barred the bank from onboarding new customers in March 2022 after identifying “material supervisory concerns” and directed it to appoint an IT audit firm to conduct a comprehensive audit of its technology systems.
On January 31 and February 16, 2024, the RBI imposed additional business restrictions on the bank, including prohibiting fresh deposits, credits and top-ups in existing customer accounts, prepaid instruments and wallets, as reported by Economic Times.
