The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), marking a definitive end to the troubled lender. This follows the Reserve Bank of India’s cancellation of PPBL’s banking licence on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949.
Key Details of the Paytm Payments Bank Winding Up
The RBI had cancelled PPBL’s licence effective from the close of business on April 24, 2026. Additionally, the central bank had moved the Hon’ble High Court of Delhi under Sections 38 and 39 of the Banking Regulation Act, 1949, seeking a formal winding-up order. The RBI also requested the appointment of a liquidator at that time.
By an order dated July 8, 2026, read with a subsequent order dated July 22, 2026, the Delhi High Court officially directed that PPBL be wound up. The court cited the provisions of the Banking Regulation Act, 1949, alongside the Companies Act, 2013. As a result, the bank’s operations will now be fully wound down under legal supervision.
The court appointed Shri Girikumar M Nair, a former Chief General Manager of State Bank of India, as the Official Liquidator of PPBL. Therefore, he now holds all the powers previously vested in PPBL’s Board of Directors. This authority took effect from July 8, 2026.
What This Means for Customers and Depositors
The Official Liquidator will exercise all powers prescribed under the Banking Regulation Act, 1949, along with applicable provisions of the Companies Act, 2013. However, depositors and creditors should note that the liquidation process will govern how claims are settled. For example, the liquidator will assess and distribute the bank’s assets in accordance with the law.
Meanwhile, customers who still hold balances or have pending transactions with PPBL should closely monitor official communications from the liquidator. The RBI’s move to wind up Paytm Payments Bank underscores its firm stance on regulatory compliance within the payments banking sector. Additionally, this case sets a significant precedent for other small finance and payments banks operating in India.
The appointment of an experienced SBI official as liquidator signals the RBI’s intent to manage the process with accountability and transparency. This development brings long-awaited clarity to PPBL’s stakeholders.
Source: RBI Press Releases
