Delhi HC orders winding up of Paytm Payments Bank after RBI licence cancellation

The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), months after the Reserve Bank of India (RBI) revoked the bank's licence over regulatory violations, the central bank said on Tuesday.

The RBI had cancelled PPBL's banking licence in April 2026, citing persistent non-compliance with regulatory norms. At the time, the central bank said the bank's affairs were being conducted in a manner detrimental to the interests of its depositors and announced that it would move the Delhi High Court for its winding up.

In a statement on Tuesday, 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 High Court has appointed Girikumar M Nair, former Chief General Manager of State Bank of India, as the Official Liquidator of PPBL.

According to the RBI, the court has authorised the Official Liquidator to exercise all powers prescribed under the Banking Regulation Act, 1949, along with the applicable provisions of the Companies Act, 2013.

The central bank added that, under the court's order, the Official Liquidator has been exercising all the powers of PPBL's board with effect from July 8, 2026.

Paytm Payments Bank, an associate of Vijay Shekhar Sharma-led fintech company Paytm, had faced repeated regulatory action over the past few years.

In March 2022, the RBI barred the bank from onboarding new customers after identifying "material supervisory concerns" and directed it to appoint an IT audit firm to conduct a comprehensive audit of its technology systems.

Subsequently, on January 31 and February 16, 2024, the RBI imposed additional business restrictions on the bank, including prohibiting fresh deposits, credits and top-ups in existing customer accounts, prepaid instruments and wallets.

While revoking the banking licence earlier this year, the RBI had said the bank's affairs were being conducted in a manner detrimental to its own interests as well as those of its depositors. CA Sansaar