The Delhi High Court has ordered Paytm Payments Bank Limited (PPBL) to wind up operations. The Reserve Bank of India (RBI) confirmed the order on Tuesday, two months after it cancelled PPBL’s banking licence in April 2026 and cited persistent non-compliance with regulatory norms. The central bank said the bank’s affairs were being run in a manner harmful to depositors and announced it would move the Delhi High Court for winding up.
In its statement, the RBI said, “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 Regulation Act, 1949 read with the provisions of the Companies Act, 2013.”
The court has appointed Girikumar M Nair, former Chief General Manager of the State Bank of India, as Official Liquidator. He 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.
Under regulatory scanner for years
The RBI had earlier said the bank’s affairs were harmful to its own interests as well as its depositors’ interests. PPBL is an associate of Vijay Shekhar Sharma-led Paytm and has been in the regulatory spotlight over the past few years.
In March 2022, the RBI stopped the bank from onboarding new customers. The regulator cited material supervisory concerns and ordered an IT audit of its systems. The RBI added more restrictions on January 31 and February 16, 2024. These barred fresh deposits, credits and top-ups in existing accounts, prepaid instruments and wallets.
The winding-up order closes a process that began with the licence cancellation in April. The Official Liquidator will now oversee the bank’s affairs under the court’s supervision.