Mumbai28 July. The Reserve Bank of India (RBI) on Tuesday said that the Delhi High Court has ordered the closure of Paytm Payments Bank Limited (PPBL). In fact, RBI had canceled the banking license of PPBL in April 2026 due to violation of regulatory standards. The central bank had found the functioning of PPBL to be prejudicial to the interests of depositors. After this, RBI filed a petition in the High Court to close the bank.
Reserve Bank had filed a petition to close Paytm Payments Bank.
The central bank said, ‘The Delhi High Court, under its orders dated July 8 and July 22, has directed the closure of PPBL citing the provisions of the Banking Regulation Act, 1949 and the Companies Act, 2013.’
Former SBI CGM M Nair appointed official liquidator of PPBL
RBI also appointed former Chief General Manager (CGM) of State Bank of India (SBI) Girikumar M Nair as the official liquidator of Paytm Payments Bank. Referring to the court order, RBI said that the liquidator will exercise all the powers vested in the board of directors of the bank from July 8, 2026.
Regulatory action has been taken against PPBL several times before
It is noteworthy that regulatory action has been taken against PPBL, a subsidiary of online payment platform Paytm, several times in the past. There was a ban on adding new customers from 2022. Later in 2024, restrictions were also imposed on its deposits and other services.
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