The Delhi High Court has ordered the official winding up of Paytm Payments Bank, months after the Reserve Bank of India (RBI) revoked its banking license over persistent regulatory non-compliance. This marks the final stage in the bank's closure process, with an official liquidator now appointed.
April 2026
License Cancellation
⏳ Time Machine
How today’s news fits into the bigger picture
2015
Paytm Payments Bank receives license
Paytm Payments Bank was among the first entities to receive a payments bank license from the RBI, aiming to broaden financial inclusion through digital services. It was expected to be a major player in India's digital payments evolution.
March 2022
RBI bars new customer onboarding
The Reserve Bank of India imposed its first significant restriction, directing Paytm Payments Bank to stop onboarding new customers due to 'material supervisory concerns' identified by the regulator.
January 2024
RBI bans deposits, wallet top-ups
Regulatory actions intensified as the RBI barred the bank from accepting new deposits, credit transactions, and wallet top-ups, effectively halting its primary operations due to persistent non-compliance issues.
April 2026
Banking license cancelled
The RBI revoked Paytm Payments Bank's banking license entirely, citing that the bank's affairs were being conducted in a manner detrimental to its depositors' interests and that it had failed to comply with licensing conditions.
July 8, 2026
High Court orders winding up
The Delhi High Court issued an initial order for the bank's winding up, followed by a confirming order on July 22, based on the RBI's application under banking regulations.
Today
The Delhi High Court ordered the official winding up of Paytm Payments Bank, formalizing its closure.
What happens next?
The appointed Official Liquidator will proceed with the valuation and repayment of deposits to all account holders.
Paytm Payments Bank Limited (PPBL) will be formally wound up following a Delhi High Court order, which endorsed the Reserve Bank of India's (RBI) decision to cancel its banking license. The court appointed Girikumar M Nair, a former Chief General Manager of State Bank of India, as the Official Liquidator, granting him all powers of PPBL's board from July 8, 2026. The RBI had revoked PPBL's license in April 2026, citing persistent non-compliance and operations detrimental to depositors. While the bank itself is closing, the Paytm app for UPI and other services, run by One97 Communications, remains operational. The RBI has assured that PPBL has sufficient liquidity to repay all deposit liabilities during the winding-up process.
💭 If you're wondering…
Yes, the RBI has explicitly stated that Paytm Payments Bank has enough liquidity to repay all its deposit liabilities. The winding-up process ensures that depositors' funds are returned.
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Official sources
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