The Delhi High Court has ordered the closure of Paytm Payments Bank Limited (PPBL). The Reserve Bank of India (RBI) on Tuesday (July 28) said that the bank’s license had already been cancelled due to persistent violations of regulations, and this order is the last stage in the process of closing the bank. The RBI said in a statement that the Delhi High Court, by orders dated July 8 and July 22, 2026, has directed the closure of Paytm Payments Bank under the parameters of the Banking Regulation Act, 1949 and the Companies Act, 2013.
SBI appoints official liquidator
The court has appointed Girikumar M. Nair, former Chief General Manager of State Bank of India (SBI), as the official liquidator of Paytm Payments Bank. The RBI said that he has been given all the powers prescribed under the Banking Regulation Act and the Companies Act.
Appointment of Liquidator:
The court has appointed Girikumar M Nair, former Chief General Manager of State Bank of India (SBI), as the Official Liquidator. He will oversee all the assets, debt repayments and processes of the bank.
Reason for the order:
Earlier on April 24, RBI had cancelled the banking license of Paytm Payments Bank due to violation of regulations and activities detrimental to the interests of customers. After that, RBI had filed an application in the Delhi High Court to close the bank.
Impact on customers/depositors:
Money is safe: RBI has clarified that the bank has sufficient liquidity (financial funds) available to repay all its depositors.
Paytm app will continue to operate: This order is only for ‘Paytm Payments Bank’. The main Paytm app, UPI, recharge and other payment services will continue to operate normally through other partner banks.