Delhi High Court Orders Official Liquidation of Paytm Payments Bank

The Delhi High Court ordered the winding up of Paytm Payments Bank Ltd under the Banking Regulation Act and the Companies Act, following a directive from the Reserve Bank of India (RBI). The RBI had cancelled the bank’s licence in April 2026, citing persistent regulatory non‑compliance and conduct detrimental to depositors’ interests.

Former State Bank of India chief general manager Girikumar M Nair was appointed as the official liquidator, assuming all powers of the bank’s board from 8 July 2026. The liquidation concludes a series of supervisory actions that began in March 2022, when the RBI barred the bank from onboarding new customers and later imposed restrictions on deposits, credits and wallet top‑ups.

The order marks the culmination of regulatory scrutiny on the fintech affiliate of One97 Communications, led by Vijay Shekhar Sharma, and underscores heightened enforcement within India’s payments sector.