Delhi HC orders winding up of Paytm Payments Bank; former SBI CGM appointed official liquidator

The Delhi High Court has ordered the winding up of Paytm Payments Bank Ltd. (PPBL), months after the Reserve Bank of India (RBI) revoked the bank's licence over persistent regulatory violations. The central bank announced the development on Tuesday, marking the formal commencement of the bank's liquidation process.

According to the RBI, the High Court, through orders dated July 8 and July 22, 2026, directed that Paytm Payments Bank be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013.

The court has appointed Girikumar M. Nair, former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator of the bank. Under the court's directions, the Official Liquidator has been vested with all powers prescribed under the Banking Regulation Act and the applicable provisions of the Companies Act. The RBI said that, with effect from July 8, 2026, the liquidator has been exercising all the powers of PPBL's board.

RBI had cancelled licence in April

The winding-up order follows the RBI's decision on April 24, 2026, to cancel Paytm Payments Bank's banking licence under Section 22(4) of the Banking Regulation Act, 1949. At the time, the central bank had said the bank's affairs were being conducted in a manner detrimental to the interests of its depositors and announced that it would approach the Delhi High Court for winding up the bank.

The RBI had also stated that it had filed the winding-up application before the High Court under Sections 38 and 39 of the Banking Regulation Act while recommending the appointment of Girikumar M. Nair as the liquidator.

Regulatory scrutiny over the years

Paytm Payments Bank, an associate of Vijay Shekhar Sharma-led fintech company Paytm, had been under regulatory scrutiny for several years before the cancellation of its licence.

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

The regulatory action intensified in January and February 2024, when the RBI imposed additional restrictions, preventing the bank from accepting fresh deposits, credits and top-ups in customer savings accounts, prepaid instruments, FASTags and wallets. Those measures were introduced after the central bank flagged persistent compliance deficiencies and governance concerns.

When revoking the licence earlier this year, the RBI said the bank's operations were being carried out in a manner detrimental not only to its own interests but also to those of its depositors.