New Delhi: The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL) following a petition filed by the Reserve Bank of India (RBI), marking the final stage in the closure of the payments bank after its banking licence was cancelled earlier this year. The court has also appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India (SBI), as the official liquidator to oversee the winding-up process.
The decision comes months after the RBI revoked PPBL’s banking licence in April 2026, citing persistent regulatory violations and concerns that the bank’s operations were detrimental to the interests of depositors.
High Court approves RBI’s petition
According to the RBI, the Delhi High Court issued orders dated July 8 and July 22, 2026, directing that Paytm Payments Bank be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013.
The regulator said the winding-up order formally concludes the legal process initiated after the cancellation of the bank’s licence.
Official liquidator appointed
The High Court has appointed Girikumar M. Nair, former Chief General Manager at SBI, as the Official Liquidator of PPBL.
He will take charge of the liquidation process, assume the powers of the bank’s board and supervise the settlement of liabilities, repayment of depositors and other legal formalities involved in closing the institution.
Why RBI cancelled the licence
The RBI cancelled Paytm Payments Bank’s licence in April 2026 after concluding that the bank had repeatedly failed to comply with regulatory requirements.
According to the central bank, the lender continued to violate licensing conditions and conducted its affairs in a manner considered detrimental to the interests of depositors. The action followed years of regulatory scrutiny, during which the bank faced restrictions on onboarding new customers and accepting fresh deposits.
What happens to customers?
The RBI has previously stated that Paytm Payments Bank has sufficient liquidity to repay depositors during the winding-up process.
The official liquidator will now oversee the orderly closure of the bank, including the settlement of claims and repayment of eligible depositors in accordance with applicable laws.
Impact on Paytm
The winding-up order applies specifically to Paytm Payments Bank Limited and not to One97 Communications Ltd, the parent company that operates the Paytm app and several other fintech businesses.
Other Paytm services that do not depend on the payments bank may continue to operate through partner banks and regulated financial institutions, subject to existing arrangements.
A significant moment for India’s fintech sector
The closure of Paytm Payments Bank marks one of the most significant regulatory actions taken against a payments bank in India.
Industry experts say the development underscores the RBI’s strict approach towards regulatory compliance, governance standards and customer protection in the rapidly growing digital banking and fintech ecosystem.
Conclusion
The Delhi High Court’s winding-up order brings the Paytm Payments Bank chapter to a formal close after months of regulatory action by the RBI. With an official liquidator now in charge, the focus will shift to an orderly liquidation process, repayment of depositors and completion of all statutory requirements.