Delhi HC orders closure of Paytm Payments Bank: RBI
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Mumbai: The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), months after the Reserve Bank of India (RBI) cancelled the bank's licence over persistent regulatory violations, marking the final step in the lender's closure process, the central bank said on Tuesday.
In a statement, the RBI said the High Court, through orders dated July 8 and July 22, 2026, directed that PPBL be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013.
"By an Order dated July 08, 2026 read with the Order dated July 22, 2026, the High Court of Delhi has ordered that PPBL be wound-up under the provisions of the Banking Regulation Act, 1949 read with the provisions of Companies Act, 2013," the central bank said.
The court has appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India, as the Official Liquidator of Paytm Payments Bank.
The RBI said the Official Liquidator has been authorised to exercise all powers prescribed under the Banking Regulation Act, 1949, along with the applicable provisions of the Companies Act, 2013.
According to the central bank, the Official Liquidator has been exercising all the powers of PPBL's Board of Directors with effect from July 8, 2026.
"The High Court appointed Girikumar M Nair as the Official Liquidator of PPBL. As per the said order, the Official Liquidator shall exercise all the powers prescribed under the provisions of the Banking Regulation Act, 1949 along with applicable provisions of the Companies Act, 2013," the RBI said.
"In terms of the said order, the Official Liquidator shall, with effect from July 8, 2026, exercise all the powers of the Board of PPBL," it added.
The winding-up order follows the RBI's decision in April 2026 to cancel Paytm Payments Bank's banking licence after finding persistent non-compliance with regulatory requirements.
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. It had also announced that it would approach the Delhi High Court to initiate winding-up proceedings.
With IANS inputs