Delhi HC Orders Closure Of Paytm Payments Bank
The High Court, through orders dated July 8 and July 22, 2026, directed that PPBL be wound up under the provisions of the Banking Regulation Act, 1949: The RBI
MUMBAI: The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), months after the Reserve Bank of India (RBI) cancelled the lender’s license (in April 2026) over persistent non-compliance with regulatory norms, the central bank informed on Tuesday. The court has appointed Girikumar M. Nair, former Chief General Manager of State Bank of India, as the official liquidator of Paytm Payments Bank.
The RBI had then said that the bank’s affairs were being run in a manner harmful to depositors and had announced that it would move the Delhi High Court for winding up.
In a statement, the RBI on Tuesday said the High Court, through orders dated July 8 and July 22, 2026, directed that PPBL be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013.
Nair has been given all powers prescribed under the Banking Regulation Act, 1949, along with applicable provisions of the Companies Act, 2013. He has held the powers of PPBL’s board since July 8, under the court’s order.
As the official liquidator, Nair will be responsible for taking control of the bank's remaining affairs, safeguarding records and assets, addressing outstanding claims and carrying out the liquidation process under the directions of the Delhi High Court.
During this period, the powers previously vested in the bank's board of directors have been transferred to the liquidator.
Following the winding up announced in April 2026, One97 Communications, which owns the Paytm brand, had mentioned in its company filing that PPBL had ceased to be an associate of One 97 Communications Ltd. One 97 does not have any exposure or material business link with PPBL and all its key Paytm services continue to operate without interruption.
Paytm’s core offerings including the Paytm app, UPI services, Paytm Gold, and merchant solutions such as QR codes, Soundbox devices, and card machines remain fully functional.
