The Delhi High Court ordered the winding up of Paytm Payments Bank and appointed former SBI executive Girikumar M. Nair as the official liquidator after the RBI cancelled the bank's licence.
The move follows years of regulatory scrutiny, including restrictions on onboarding new customers in 2022, a ban on fresh deposits in 2024, and the eventual licence cancellation over persistent non-compliance.
The RBI has assured depositors that the bank has sufficient liquidity to repay deposits during liquidation, while Paytm's UPI, bill payments, recharges and other app-based services will continue to operate normally.
The Delhi High Court has ordered the winding up of Paytm Payments Bank Ltd. (PPBL), bringing the curtains down on the once-prominent payments bank after years of regulatory action by the Reserve Bank of India (RBI).
The central bank said on Tuesday that it had approached the court after cancelling PPBL's banking licence in April, following repeated compliance failures.
4 July 2026
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The court has now appointed former State Bank of India executive Girikumar M. Nair as the official liquidator to oversee the closure of the bank.
Liquidator to Oversee Closure
According to the RBI, Nair assumed charge as the liquidator on July 8 and will exercise all the powers previously vested in the bank's board of directors during the liquidation process.
The RBI said it sought the winding-up order after concluding that the bank's operations had been conducted "in a manner detrimental to the interest of the bank and its depositors."
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The court's order marks the final legal step in dissolving the payments bank, which was once a key player in India's fast-growing digital payments ecosystem.
From Market Leader to Regulatory Crackdown
Paytm Payments Bank, backed by One97 Communications, received its payments bank licence in 2015 and quickly became one of India's largest payments banks.
Unlike conventional banks, payments banks are permitted to accept deposits and facilitate digital transactions but are not allowed to extend loans.
However, the lender came under the RBI's regulatory scanner in March 2022, when it was barred from onboarding new customers over supervisory concerns.
The restrictions intensified in January 2024, when the central bank prohibited PPBL from accepting fresh deposits and carrying out several banking services, citing persistent non-compliance with regulatory requirements.
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In April 2026, the RBI cancelled the bank's licence, stating that its affairs had been conducted in a manner detrimental to both the institution and its depositors. It had also announced its intention to seek a court order for the bank's winding up.
What It Means for Customers
The RBI has previously assured customers that their deposits remain safe, stating that Paytm Payments Bank has sufficient liquidity to repay all deposit liabilities during the liquidation process.
The winding up of PPBL does not affect the Paytm app's core digital payment services. Users can continue to access UPI payments, mobile recharges, bill payments and other merchant payment services through the app as before.
Following the RBI's licence cancellation, One97 Communications had also clarified that it has no financial exposure to PPBL, having fully impaired its investment in the payments bank as of March 31, 2024.
