Paytm Payments Bank Shut Down: What Happens to Paytm App After Delhi HC Orders Liquidation?
The Delhi High Court has officially ordered the winding up of Paytm Payments Bank Limited (PPBL) following non-compliance with banking regulations, the Reserve Bank of India (RBI) announced on July 28. Under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013, the court issued the directions through an order dated July 8, 2026, read with a subsequent order on July 22, 2026.
The Delhi High Court has officially ordered the winding up of Paytm Payments Bank Limited (PPBL) following non-compliance with banking regulations, the Reserve Bank of India (RBI) announced on July 28. Under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013, the court issued the directions through an order dated July 8, 2026, read with a subsequent order on July 22, 2026. Former State Bank of India (SBI) Chief General Manager Girikumar M. Nair has been appointed as the Official Liquidator to oversee the bank's liquidation process.
Why Was Paytm Payments Bank Closed?
The court order follows regulatory action initiated earlier by the RBI. In April 2026, the central bank revoked PPBL’s banking licence after finding persistent non-compliance with regulatory norms. The RBI stated that the bank’s operations were being conducted in a manner detrimental to the interests of its depositors. Paytm Payments Bank To Shut Operations After RBI Licence Cancellation.
Following the licence cancellation, the central bank petitioned the Delhi High Court seeking an official winding-up order. Troubles for the entity began earlier in March 2022, when the central bank restricted PPBL from onboarding new customers due to material supervisory concerns.
What Happens to Your Paytm App and Wallet?
Despite the liquidation order against PPBL, the Paytm app and its core digital services will continue to function normally. Parent firm One97 Communications Limited (OCL) clarified that key services—including Paytm UPI, QR code payments, Soundbox devices, card machines, and the payment gateway—remain fully operational and unaffected.
For users holding funds in PPBL accounts, the RBI confirmed that the bank maintains adequate liquidity to settle and repay all deposit liabilities during the winding-up process. Furthermore, parent company services such as Paytm Gold and Paytm Money operate independently of PPBL and continue to function without disruption. OCL had previously impaired its investment in PPBL as of March 31, 2024, confirming it holds no active financial exposure to the entity. Paytm Payments Bank To Shut Operations After RBI Licence Cancellation.
Official Liquidator Takes Control
With effect from July 8, 2026, the appointed Official Liquidator, Girikumar M. Nair, exercises all powers previously held by the Board of Directors of PPBL. The liquidator will execute all statutory functions prescribed under the Banking Regulation Act and the Companies Act to complete the winding-up process and ensure a systematic payout to account holders.
(The above story first appeared on LatestLY on Jul 28, 2026 10:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
