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Paytm Payments Bank Officially Shut Down by Court Order
29 Jul
Summary
- Delhi High Court ordered Paytm Payments Bank to be wound up.
- An official liquidator has been appointed to manage PPBL's assets.
- Regulatory breaches led to the bank's license revocation in April 2026.
The Delhi High Court has ordered the winding up of Paytm Payments Bank (PPBL), as announced by the Reserve Bank of India (RBI). This directive, issued on July 8 and July 22, 2026, follows the RBI's earlier decision in April 2026 to revoke PPBL's banking license due to ongoing non-compliance with regulatory mandates.
As part of the winding-up process, Girikumar Nair, formerly of the State Bank of India, has been appointed as the official liquidator. Nair is empowered to exercise all necessary authorities under the Banking Regulation Act, 1949, and the Companies Act, 2013, effectively taking over the powers of PPBL's board since July 8, 2026.
Paytm Payments Bank, an affiliate of Paytm, had previously faced significant regulatory scrutiny. This included being barred from acquiring new customers in March 2022 and facing further curbs in early 2024, such as restrictions on fresh deposits and wallet top-ups.
