The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), officially beginning the lender's liquidation process months after the Reserve Bank of India (RBI) revoked its banking licence over repeated regulatory violations.
RBI said on July 28, 2026, that the High Court had approved the winding up of PPBL under the provisions of the Banking Regulation Act, 1949, along with the Companies Act, 2013.
The central bank had cancelled PPBL's licence in April 2026, citing continued non-compliance with regulatory norms.
At the time, the RBI stated that the bank's operations were being carried out in a manner that was harmful to the interests of depositors, leading it to approach the Delhi High Court for winding-up proceedings.
The High Court passed orders on July 8 and July 22, 2026, allowing the liquidation process and appointing Girikumar M. Nair, former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator.
The appointed liquidator has been granted powers under the Banking Regulation Act and Companies Act to oversee PPBL's affairs.
RBI confirmed that the Official Liquidator has taken over the powers of the bank's Board of Directors from July 8, 2026, and will manage the institution during the winding-up process.
PPBL's Regulatory Troubles
Paytm Payments Bank, an associate company of One97 Communications, had been under RBI scrutiny for several years due to regulatory and compliance issues.
In March 2022, the RBI stopped PPBL from onboarding new customers after identifying major supervisory concerns. The bank was also directed to appoint an independent IT audit firm to review its technology systems and infrastructure.
The restrictions were further tightened in 2024, when the RBI barred PPBL from accepting fresh deposits, credit transactions and top-ups in customer accounts, wallets and prepaid payment instruments.
Following continued violations, the RBI cancelled the bank's licence in April 2026, stating that PPBL's activities posed risks to depositors and the stability of the institution.
Impact on Existing Customers
With the High Court's winding-up order, Paytm Payments Bank will not restart banking operations and will cease to function as a banking entity.
Key points for customers:
PPBL will no longer provide banking services or accept new banking transactions.
The Official Liquidator will oversee the bank's assets, liabilities and pending obligations.
Depositors and creditors will be dealt with according to the legal liquidation process under banking and company laws.
Customers must rely on official updates from the RBI and the Official Liquidator regarding claim submission, settlement procedures and timelines.
Earlier restrictions imposed by the RBI will continue to remain in effect.
Customers who still use PPBL-linked services should move their salary credits, bill payments, UPI mandates, auto-debits and other financial arrangements to another bank account to avoid disruptions.
The settlement of eligible deposits and claims will be carried out through the court-supervised liquidation process in accordance with applicable laws.
