Delhi HC orders winding up of Paytm Payments Bank, appoints official liquidator
29 Jul 2026, 12:45 PMThe court's directive follows the RBI’s decision to revoke Paytm Payments Bank's banking licence in April.
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The Delhi High Court has ordered the winding up of Paytm Payments Bank and appointed former SBI Payments Services MD and CEO Girikumar M. Nair as the official liquidator, bringing the lender’s banking operations to a formal close after years of regulatory scrutiny by the Reserve Bank of India (RBI).
The court's directive follows the RBI’s decision to revoke Paytm Payments Bank's banking licence in April. (Click here to read The Head and Tale's analysis of the licence cancellation.)
The central bank had subsequently approached the court to initiate liquidation proceedings, stating that the bank’s affairs were being conducted in a manner detrimental to the interests of the institution and its depositors. Nair, who took charge on July 8, will oversee the liquidation process and exercise the powers previously held by the bank’s board.
Paytm Payments Bank, which received its licence in 2015 and emerged as one of India’s largest payments banks, began facing regulatory action in March 2022 when the RBI barred it from onboarding new customers. The restrictions escalated in early 2024 when the central bank prohibited the lender from accepting fresh deposits or allowing fund additions to accounts, wallets, and prepaid payment instruments, effectively bringing its banking operations to a standstill.
The RBI attributed its action to persistent compliance failures, governance shortcomings, and deficiencies in KYC processes. At the time of the licence cancellation, the regulator said the bank had adequate liquidity to repay depositors and that the winding-up process would not adversely affect customer interests.
Following the regulatory curbs, Paytm shifted its digital payments business to partner banks and continues to offer UPI services under the third-party application provider (TPAP) model. The company has also applied for a prepaid payment instrument (PPI) licence through its subsidiary, Paytm Payments Services Ltd, as part of efforts to revive its wallet business.
Earlier this month, The Head and Tale reported that Paytm has applied to the RBI for a prepaid payment instrument (PPI, popularly known as wallet) licence.
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