Delhi High Court orders to close Paytm Payments Bank forever, has already received a blow from RBI
Delhi High Court has issued an official order to completely wind up Paytm Payments Bank Limited on the application of Reserve Bank of India. RBI said in its statement issued on Tuesday that Delhi High Court has directed to close Paytm Payments Bank under the orders given on July 8 and July 22, 2026. Along with this, the court has appointed former Chief General Manager of SBI Girikumar M Nair as the official liquidator of the bank.
This action started in April 2026, when RBI canceled the banking license of Paytm Payments Bank.
This action was taken due to RBI continuously ignoring the rules. At that time RBI had said that such operation of the bank was harmful to the interests of the depositors. After which the process of closure was started in Delhi High Court. This complete instruction has been given under the rules of Banking Regulation Act, 1949 and Companies Act, 2013. RBI said that Girikumar M Nair has been given all the rights prescribed under the Banking Regulation Act and Companies Act.
After the license was cancelled, RBI had filed a petition in the Delhi High Court to formally close the bank. While giving its verdict on that petition, the court has ordered to start the process of liquidation of the bank.
This is not the first action against PPBL. In the last few years, the bank has had to face strict action from RBI several times. In March 2022, RBI had banned adding new customers in the bank citing supervisory concerns. On January 31 and February 16, 2024, RBI had imposed additional trading restrictions on the bank.
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