Paytm Payments Bank (PPBL) will cease operations following a winding-up order from the Delhi High Court, which comes after the Reserve Bank of India (RBI) revoked the bank’s licence. This significant development marks the end of the payments bank, which had previously played an important role in India’s digital payments landscape.

The RBI issued a press release on July 28, 2026, stating that the court’s orders, dated July 8 and July 22, have directed the winding up of the bank under the Banking Regulation Act, 1949 and the Companies Act, 2013. The decision ensures the phasing out of operations that have been mired in regulatory challenges for several years.

In connection with the liquidation process, the court has appointed Girikumar M. Nair, a former Chief General Manager with the State Bank of India (SBI), as the official liquidator. His appointment, which takes effect from July 8, 2026, empowers him to exercise all powers previously held by Paytm Payments Bank’s board.

License Cancellation Triggers Liquidation Proceeding

The Delhi High Court’s decision to wind up Paytm Payments Bank follows the RBI’s action on April 24, 2026, to cancel its banking licence. This cancellation was conducted under Section 22(4) of the Banking Regulation Act and was a response to allegations regarding the management of the bank, which the RBI deemed detrimental to the interests of its depositors.

In the aftermath of the licence revocation, the RBI approached the Delhi High Court, invoking Sections 38 and 39 of the Banking Regulation Act to initiate winding up of the bank. This course of action underscores the regulatory environment in which financial institutions operate, particularly in ensuring consumer protection and adherence to established frameworks.

Paytm Payments Bank was initially granted a payments bank licence in 2015 and has been significant in promoting digital transactions in India. However, it faced increasing scrutiny from the RBI over the past few years, leading to the eventual liquidation order.

Regulatory Challenges Spanning Several Years

Throughout its existence, Paytm Payments Bank encountered numerous regulatory hurdles. In March 2022, the RBI imposed restrictions that halted the onboarding of new customers due to supervisory concerns. This action was later escalated in January 2024, when the RBI prohibited the bank from accepting fresh deposits and credit transactions, citing ongoing compliance issues.

The culmination of these regulatory actions led to the bank’s licence cancellation in April 2026, allowing the High Court’s recent orders to take effect. As the official liquidator, Girikumar M. Nair will oversee the winding-up process, ensuring compliance with both the Banking Regulation Act and relevant provisions of the Companies Act.

As the process unfolds, it highlights the significant regulatory framework governing banking institutions in India, particularly in relation to consumer protection and institutional compliance. The winding-up of Paytm Payments Bank marks a critical event in India’s financial sector, signalling the end of a notable chapter in its digital payments evolution.

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