Bureau Report |New Delhi
New Delhi: The Delhi High Court has ordered the winding up of Paytm Payments Bank Ltd (PPBL) following the Reserve Bank of India’s (RBI) decision to cancel the bank’s licence earlier this year. The order formally begins the liquidation process, marking the closure of the payments bank after years of regulatory scrutiny over compliance issues.
The RBI has appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India (SBI), as the official liquidator. He will oversee the liquidation process and manage the affairs of the bank during the winding-up proceedings.
What Does This Mean for Customers?
While the banking operations of Paytm Payments Bank are being shut down, customers have been assured that their deposits remain safe. The RBI has stated that the bank has sufficient funds to repay depositors in full during the liquidation process.
Importantly:
- Customers’ money remains protected.
- The Paytm app will continue to function.
- UPI payments, QR code transactions, and merchant payment services will continue through partner banks and are not impacted by the winding-up of PPBL.
Background
Paytm Payments Bank had been under RBI scrutiny for several years over regulatory and compliance concerns. Restrictions on its operations were imposed in phases before the RBI ultimately cancelled its banking licence in April 2026. Following the cancellation, the central bank approached the Delhi High Court seeking formal winding-up of the bank, which has now been approved.
What Customers Should Do
Customers are advised to:
- Keep track of official updates from RBI and Paytm.
- Complete any pending banking-related formalities if required.
- Continue using the Paytm app and UPI services as usual, unless notified otherwise by the company or regulators
