The Delhi High Court has officially ordered the winding up of Paytm Payments Bank Ltd. (PPBL), an associate of the fintech giant Paytm. This judicial directive comes months after the Reserve Bank of India (RBI) revoked PPBL's banking license due to what it cited as persistent regulatory violations.
The court's orders, issued on July 8 and July 22, 2026, initiate the formal liquidation process for the bank under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013. The RBI had previously announced the cancellation of PPBL's license, leading to the current legal proceedings.
Official Liquidator Appointed
To oversee the liquidation, the High Court has appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator for Paytm Payments Bank. Mr. Nair has been vested with comprehensive powers as prescribed by the Banking Regulation Act and relevant sections of the Companies Act.
Since July 8, 2026, the appointed liquidator has assumed all powers previously held by PPBL's board of directors, ensuring a structured and legally compliant closure of the banking operations. The move underscores the stringent regulatory environment governing financial institutions in India.
Background to the Winding Up
Paytm Payments Bank had been under intense regulatory scrutiny for several years leading up to the cancellation of its license. The RBI’s decision to revoke the license stemmed from continued non-compliance with banking regulations, which ultimately necessitated the winding-up order from the Delhi High Court.