Summary
The Delhi High Court on July 28 ordered the winding up of Paytm Payments Bank, months after the Reserve Bank of India cancelled its banking licence. The court appointed former SBI executive Girikumar M. Nair as official liquidator. The winding-up follows years of regulatory action: RBI stopped new customer onboarding in March 2022, barred deposits and wallet top-ups in early 2024, and cancelled the licence in April 2026. Despite the dramatic headlines, the RBI confirmed the bank has enough funds to repay depositors, and Paytm's UPI service continues through partner banks.
Key Facts
- Delhi High Court ordered winding up under Banking Regulation Act, 1949 and Companies Act, 2013
- Official liquidator: Girikumar M. Nair, former CGM of State Bank of India (exercising board powers since July 8)
- RBI cancelled Paytm Payments Bank licence in April 2026
- Regulatory timeline: March 2022 (stop new customers), early 2024 (stop deposits/wallet top-ups), April 2026 (licence cancelled)
- Bank had 3.3 crore+ accounts and wallets before restrictions
- Deposits are protected; bank has enough funds to repay depositors
- Existing wallet balances can still be spent; no new deposits or top-ups allowed
- Paytm UPI continues through partner banks — no disruption
- Paytm QR, Soundbox, Card Machine, Payment Gateway continue through partner banks
- Paytm Money and Paytm Gold unaffected (separate from payments bank)
- Legal advisers: AZB & Partners appointed for winding-up process
Why It Matters
Paytm Payments Bank's winding-up marks the end of a pivotal chapter in India's digital banking journey. Launched in 2015, it was one of the largest payments banks and played a crucial role in India's digital payments revolution. Its closure demonstrates the RBI's willingness to enforce regulatory compliance even against the country's most prominent fintech. The key lesson: the separation between Paytm (the app/technology company) and Paytm Payments Bank (the regulated entity) proved critical — the app and its UPI services survive through partner banks, while the banking entity is wound up. This structure may become a template for how regulators handle fintech-bank failures.