Delhi High Court orders winding up of Paytm Payments Bank
The High Court of Delhi has ordered the winding up of Paytm Payments Bank Limited following an application by the Reserve Bank of India. The court appointed Shri Girikumar M Nair as the official liquidator effective July 8, 2026.
From licence cancellation to liquidation
The Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Limited on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949.
Concurrently, the central bank approached the High Court of Delhi under Sections 38 and 39 of the act to initiate formal winding-up proceedings.
The Delhi High Court subsequently issued orders on July 8 and July 22, 2026, ordering the complete winding up of the institution under both the Banking Regulation Act and the Companies Act, 2013.
The court formally appointed Shri Girikumar M Nair, a former Chief General Manager of the State Bank of India, as the official liquidator to oversee the process.
Taking over the board
Under the court's directives, the official liquidator assumes total control and exercises all powers previously held by the Board of Paytm Payments Bank Limited starting from July 8, 2026.
The liquidator is vested with statutory authorities prescribed under both the Banking Regulation Act and the applicable provisions of the Companies Act.
This legal action marks the culmination of regulatory interventions by the Reserve Bank of India addressing persistent compliance deficiencies at the entity.
A severe regulatory finality
The judicial winding-up order seals the fate of a once-prominent fintech banking arm.
It underscores the zero-tolerance approach regulators apply to severe governance lapses.
For the broader digital payments sector, this serves as a stark reminder of compliance boundaries.
Source: Winding up of Paytm Payments Bank Limited
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