Months after the Reserve Bank of India (RBI) cancelled the bank's license due to ongoing regulatory infractions, the Delhi High Court ordered the winding up of Paytm Payments Bank Ltd. (PPBL). The official start of the bank's liquidation procedure was declared by the central bank on Tuesday.
The Reserve Bank of India (RBI) revoked PPBL's banking license in April of this year due to non-compliance with regulations, claiming that the bank's operations were detrimental to the interests of its depositors.
Additionally, the central bank declared that it would submit an application to the High Court for the bank's winding up. Girikumar M Nair, a former CGM of State Bank of India, was named PPBL's liquidator.
ALSO READ: File ITR For Rs 11: Paytm Ties Up With ClearTax Ahead Of Deadline
"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," it said.
Nair was also designated by the High Court as PPBL's Official Liquidator.
The RBI stated in the order that the official liquidator would have all the authority granted by the Banking Regulation Act of 1949 and the relevant sections of the Companies Act of 2013.
According to the aforementioned order, the official liquidator will exercise all of the Board of PPBL's authority starting on July 8, 2026.
PPBL, an affiliate of the fintech company Paytm, has already been under regulatory scrutiny on several occasions, including in March 2022 when the central bank prohibited it from accepting new clients.
The RBI said that the bank's operations were harmful to both its own and its depositors' interests when it revoked the licence.
ALSO READ: BharatPe, Paytm Among 8 Indian Fintechs In Global Top List For 2026
Due to "material supervisory concerns" noted in the bank, PPBL was previously instructed to cease onboarding new clients as of March 11, 2022.
Additionally, the bank was instructed to hire an IT audit company to perform a thorough system assessment of its IT infrastructure.
The bank was thereafter subject to additional business restrictions on January 31, 2024, and February 16, 2024, which included prohibiting any more deposits, credits, or top-ups in wallets, prepaid instruments, and client accounts.
With PTI inputs
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.