New Delhi: The Delhi High Court has ordered the liquidation of Paytm Payments Bank Limited (PPBL), formally approving the legal process for winding up the bank following the Reserve Bank of India (RBI)’s decision to revoke its banking licence over alleged persistent regulatory violations. The court has appointed Girikumar M. Nair, former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator to supervise the bank’s liquidation process.
According to the RBI, the Delhi High Court, through its orders dated July 8 and July 22, 2026, directed the closure of Paytm Payments Bank under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013. The central bank said the court’s decision represents the final legal step in the bank’s winding-up process.
The Official Liquidator has been vested with all statutory powers available under the Banking Regulation Act and the Companies Act. The RBI stated that, with effect from July 8, 2026, the Official Liquidator has assumed all powers previously exercised by the bank’s Board of Directors and will now oversee the bank’s operations, asset management, liabilities and all matters relating to the liquidation process.
The RBI clarified that it had revoked the banking licence of Paytm Payments Bank in April 2026, citing repeated non-compliance with regulatory requirements. According to the central bank, the bank had failed to adhere to mandatory regulatory norms, and deficiencies in its operations were found to be detrimental to the interests of depositors and the stability of the banking system.
At the time of revoking the licence, the RBI had also announced that it would approach the Delhi High Court to initiate the formal winding-up proceedings. Following the court’s latest order, the liquidation process will now proceed in accordance with applicable legal provisions, including the settlement of the bank’s assets, liabilities and other financial obligations.
The RBI said the Official Liquidator will exercise all powers conferred under the Banking Regulation Act, 1949, and the Companies Act, 2013, in accordance with the court’s directions. The liquidator will be responsible for administering the bank’s remaining affairs and completing the liquidation process in compliance with the law.
Meanwhile, shares of One 97 Communications, the listed parent company of Paytm, witnessed market volatility following the development. The stock closed at ₹1,308, up 1.43% from the previous close, giving the company a market capitalisation of approximately ₹83,815 crore.
The RBI said the liquidation proceedings will continue under the supervision of the court and in accordance with the applicable legal framework. It added that the rights of stakeholders, claims of creditors and other financial obligations will be addressed through the prescribed legal process.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
