The Delhi High Court has ordered the formal winding up of Paytm Payments Bank Limited (PPBL) under the Banking Regulation Act, 1949, and the Companies Act, 2013. The development follows the Reserve Bank of India’s (RBI) cancellation of PPBL’s banking license earlier in April 2026 due to persistent supervisory concerns and regulatory non-compliance.
Key Highlights of the Order
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Official Liquidator Appointed: The court appointed Girikumar M. Nair, former Chief General Manager (CGM) at State Bank of India (SBI), as the Official Liquidator for PPBL.
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Transfer of Board Powers: Effective July 8, 2026, the liquidator has assumed all powers of PPBL’s Board of Directors. He will oversee the settlement of liabilities, asset management, and final liquidation under court supervision.
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Regulatory Background: The RBI revoked PPBL’s license on April 24, 2026, citing operations detrimental to the interests of depositors. The central bank subsequently petitioned the High Court to initiate liquidation proceedings.
Impact on Customers & Parent Entity (One97 Communications)
| Entity / Service | Status & Impact |
| Depositor Funds | Safe: The RBI previously confirmed that PPBL maintains sufficient liquidity to repay all remaining deposit liabilities during the liquidation process. |
| Paytm App & UPI | Uninterrupted: Core consumer services—including Paytm UPI, QR codes, Soundbox, and card machines—operate via third-party partner banks and remain fully functional. |
| One97 Communications | No Financial Exposure: Parent firm One97 Communications has impaired its investments in PPBL and holds no operational dependencies on the payments bank entity. |
Bottom Line: The court order marks the final legal phase in shutting down Paytm Payments Bank. While the entity itself ceases to exist, Paytm’s core fintech services continue operating normally through partner commercial banks.
