Policy · Financial Services
Delhi court orders Paytm payments bank winding up
By Startup Enthusiast ·
- Date
- Company
- Paytm Payments Bank
- What it does
- Payments bank for deposits
- Kind
- Policy
- Founded
- 2015
- Sector
- Financial Services
What they do
The Delhi High Court ordered the winding up of Paytm Payments Bank
What happened
The Reserve Bank of India cancelled its licence due to regulatory non-compliance
Why it matters
The bank was once the largest payments bank in the country by customers
The details
- The Delhi High Court ordered the winding up of Paytm Payments Bank.
- The court appointed Girikumar M Nair as the official liquidator.
- Nair's powers as board member became effective on July 8, 2026.
- The Reserve Bank of India petitioned for the winding-up proceedings.
- RBI cancelled the banking licence in April 2026 citing non-compliance.
- RBI cited depositor risk and severe KYC lapses as triggers.
- The regulator stated the bank has enough liquidity to repay all deposits.
- One 97 Communications reported no exposure to PPBL post-April 2026.
The bigger picture
- RBI barred new customer onboarding in March 2022 due to issues.
- Fresh deposits were prohibited starting January 2024.
- RBI directed the bank to wind down by March 2024.
- Affairs were conducted detrimentally to depositors' interests according to RBI.
About the business
- PPBL is an associate firm of Vijay Shekhar Sharma-promoted Paytm.
- It is owned by One 97 Communications.
- PPBL was once the largest payments bank in the country.
- Payments banks accept deposits but cannot extend loans.
- One 97 Communications impaired investment in PPBL by March 2024.
What happens next
- Official liquidator will oversee the liquidation process.
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