End of the road for Paytm Payments Bank as court orders winding up
The Delhi High Court has ordered Paytm Payments Bank to be wound up after the RBI cancelled its licence. The move begins formal liquidation and closes a regulatory crackdown that ran for over four years.
Paytm Payments Bank (PPBL) will be wound up after the Delhi High Court ordered its liquidation, marking the final chapter in the payments bank's closure months after the Reserve Bank of India (RBI) cancelled its banking licence.
In a press release issued on Tuesday, the RBI said the Delhi High Court, through orders dated July 8 and July 22, directed that Paytm Payments Bank be wound up under the Banking Regulation Act, 1949, read with the Companies Act, 2013.
The court also appointed Girikumar M. Nair, former Chief General Manager of State Bank of India (SBI), as the official liquidator to oversee the process.
The official liquidator will exercise all the powers of the bank's board with effect from July 8, 2026, the RBI said.
WHY IS PAYTM PAYMENTS BANK BEING CLOSED?
The winding-up order follows the RBI's decision on April 24, 2026, to cancel Paytm Payments Bank's banking licence under Section 22(4) of the Banking Regulation Act.
Following the licence cancellation, the central bank approached the Delhi High Court under Sections 38 and 39 of the Banking Regulation Act, seeking the winding up of the bank and the appointment of an official liquidator.
At the time of cancelling the licence, the RBI had said the affairs of the bank were being conducted in a manner "detrimental to the interest of the bank and its depositors."
A LONG REGULATORY CRACKDOWN
Paytm Payments Bank, backed by One 97 Communications, was among the first entities to receive a payments bank licence in 2015 and played a key role in India's rapidly growing digital payments ecosystem.
A payments bank is a specialised category of bank that can accept deposits and facilitate payments but is not allowed to lend money.
However, the lender came under increasing regulatory scrutiny over the past few years.
In March 2022, the RBI directed Paytm Payments Bank to stop onboarding new customers, citing supervisory concerns. The restrictions were tightened further in January 2024, when the central bank barred the lender from accepting fresh deposits and credit transactions after identifying persistent compliance issues.
The RBI eventually cancelled the bank's licence in April this year, paving the way for the winding-up proceedings.
With the High Court appointing an official liquidator, the formal process of winding up Paytm Payments Bank will now begin.
According to the RBI, Girikumar M. Nair will oversee the liquidation process and exercise all powers of the bank's board in accordance with the Banking Regulation Act and applicable provisions of the Companies Act.
The court's order effectively marks the final stage in the closure of what was once India's largest payments bank, bringing to an end a regulatory action that unfolded over more than four years.
Paytm Payments Bank (PPBL) will be wound up after the Delhi High Court ordered its liquidation, marking the final chapter in the payments bank's closure months after the Reserve Bank of India (RBI) cancelled its banking licence.
In a press release issued on Tuesday, the RBI said the Delhi High Court, through orders dated July 8 and July 22, directed that Paytm Payments Bank be wound up under the Banking Regulation Act, 1949, read with the Companies Act, 2013.
The court also appointed Girikumar M. Nair, former Chief General Manager of State Bank of India (SBI), as the official liquidator to oversee the process.
The official liquidator will exercise all the powers of the bank's board with effect from July 8, 2026, the RBI said.
WHY IS PAYTM PAYMENTS BANK BEING CLOSED?
The winding-up order follows the RBI's decision on April 24, 2026, to cancel Paytm Payments Bank's banking licence under Section 22(4) of the Banking Regulation Act.
Following the licence cancellation, the central bank approached the Delhi High Court under Sections 38 and 39 of the Banking Regulation Act, seeking the winding up of the bank and the appointment of an official liquidator.
At the time of cancelling the licence, the RBI had said the affairs of the bank were being conducted in a manner "detrimental to the interest of the bank and its depositors."
A LONG REGULATORY CRACKDOWN
Paytm Payments Bank, backed by One 97 Communications, was among the first entities to receive a payments bank licence in 2015 and played a key role in India's rapidly growing digital payments ecosystem.
A payments bank is a specialised category of bank that can accept deposits and facilitate payments but is not allowed to lend money.
However, the lender came under increasing regulatory scrutiny over the past few years.
In March 2022, the RBI directed Paytm Payments Bank to stop onboarding new customers, citing supervisory concerns. The restrictions were tightened further in January 2024, when the central bank barred the lender from accepting fresh deposits and credit transactions after identifying persistent compliance issues.
The RBI eventually cancelled the bank's licence in April this year, paving the way for the winding-up proceedings.
With the High Court appointing an official liquidator, the formal process of winding up Paytm Payments Bank will now begin.
According to the RBI, Girikumar M. Nair will oversee the liquidation process and exercise all powers of the bank's board in accordance with the Banking Regulation Act and applicable provisions of the Companies Act.
The court's order effectively marks the final stage in the closure of what was once India's largest payments bank, bringing to an end a regulatory action that unfolded over more than four years.
Paytm Payments Bank (PPBL) will be wound up after the Delhi High Court ordered its liquidation, marking the final chapter in the payments bank's closure months after the Reserve Bank of India (RBI) cancelled its banking licence.
In a press release issued on Tuesday, the RBI said the Delhi High Court, through orders dated July 8 and July 22, directed that Paytm Payments Bank be wound up under the Banking Regulation Act, 1949, read with the Companies Act, 2013.
The court also appointed Girikumar M. Nair, former Chief General Manager of State Bank of India (SBI), as the official liquidator to oversee the process.
The official liquidator will exercise all the powers of the bank's board with effect from July 8, 2026, the RBI said.
WHY IS PAYTM PAYMENTS BANK BEING CLOSED?
The winding-up order follows the RBI's decision on April 24, 2026, to cancel Paytm Payments Bank's banking licence under Section 22(4) of the Banking Regulation Act.
Following the licence cancellation, the central bank approached the Delhi High Court under Sections 38 and 39 of the Banking Regulation Act, seeking the winding up of the bank and the appointment of an official liquidator.
At the time of cancelling the licence, the RBI had said the affairs of the bank were being conducted in a manner "detrimental to the interest of the bank and its depositors."
A LONG REGULATORY CRACKDOWN
Paytm Payments Bank, backed by One 97 Communications, was among the first entities to receive a payments bank licence in 2015 and played a key role in India's rapidly growing digital payments ecosystem.
A payments bank is a specialised category of bank that can accept deposits and facilitate payments but is not allowed to lend money.
However, the lender came under increasing regulatory scrutiny over the past few years.
In March 2022, the RBI directed Paytm Payments Bank to stop onboarding new customers, citing supervisory concerns. The restrictions were tightened further in January 2024, when the central bank barred the lender from accepting fresh deposits and credit transactions after identifying persistent compliance issues.
The RBI eventually cancelled the bank's licence in April this year, paving the way for the winding-up proceedings.
With the High Court appointing an official liquidator, the formal process of winding up Paytm Payments Bank will now begin.
According to the RBI, Girikumar M. Nair will oversee the liquidation process and exercise all powers of the bank's board in accordance with the Banking Regulation Act and applicable provisions of the Companies Act.
The court's order effectively marks the final stage in the closure of what was once India's largest payments bank, bringing to an end a regulatory action that unfolded over more than four years.
