Delhi High Court Orders Winding Up of Paytm Payments Bank
Delhi High Court Orders Winding Up of Paytm Payments Bank; Official Liquidator Appointed
The Reserve Bank of India (RBI), through an order dated April 24, 2026, revoked the banking licence of Paytm Payments Bank Limited (PPBL) under Section 22(4) of the Banking Regulation Act, 1949, with the cancellation taking effect from the close of business on the same day.
Following the licence cancellation, RBI exercised its powers under Sections 38 and 39 of the Banking Regulation Act, 1949 and approached the Delhi High Court seeking an order for the winding up of PPBL. The application also proposed the appointment of Shri Girikumar M. Nair, former Chief General Manager of the State Bank of India, as the Liquidator for the bank.
Subsequently, by orders dated July 8, 2026, and July 22, 2026, the Delhi High Court directed that Paytm Payments Bank Limited be wound up in accordance with the provisions of the Banking Regulation Act, 1949, read together with the Companies Act, 2013. The Court also appointed Shri Girikumar M. Nair as the Official Liquidator of the bank.
In accordance with the Court’s directions, the Official Liquidator has been entrusted with all powers and responsibilities available under the applicable provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013. The orders further provide that, with effect from July 8, 2026, the Official Liquidator shall assume and exercise all powers previously vested in the Board of Directors of PPBL.
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