Delhi HC orders Paytm Payments Bank to be wound up: What happens to your Paytm wallet, UPI now?
The Delhi High Court has ordered the winding up of Paytm Payments Bank Ltd (PPBL), the Reserve Bank of India (RBI) said on Tuesday.
“By an Order dated July 08, 2026 read with the Order dated July 22, 2026, the Hon’ble High Court of Delhi has ordered that PPBL be wound up under the provisions of the Banking Regulation Act, 1949 read with the provisions of the Companies Act, 2013,” it said.
Further, the High Court appointed Girikumar M Nair, a former CGM at State Bank of India, as the Official Liquidator of PPBL.
As per the Order, the RBI said the official liquidator shall exercise all the powers prescribed under the Banking Regulation Act, 1949, and the applicable provisions of the Companies Act, 2013.
In terms of the said Order, the official liquidator, with effect from July 8, 2026, exercises all the powers of the Board of PPBL, it added.
Why did RBI cancel PPBL licence?
In April this year, the RBI had cancelled the banking licence issued to PPBL for non-compliance with norms, saying the bank’s affairs were conducted in a manner detrimental to its depositors’ interests.
Following this, the RBI had said it would approach the Delhi High Court seeking an order to wind up the payments bank.
PPBL, an associate firm of Vijay Shekhar Sharma-promoted fintech firm Paytm, came under the regulatory scanner on multiple occasions earlier, including in March 2022 when the central bank barred it from onboarding new customers.
While cancelling the licence, the RBI had said the bank’s affairs were conducted in a manner detrimental to its own interests and those of its depositors.
What happens to your Paytm accounts now?
First of all, your money is safe. RBI had earlier specified in its statement that ‘bank has enough liquidity to repay its entire deposit liability upon winding up.’
Following the RBI action in April, One97 Communications, which owns the Paytm brand, had mentioned in its company filing that it has no exposure to Paytm Payments Bank (PPBL) as it had already impaired its investment in the beleaguered entity as of March 31, 2024.
One 97 Communications Limited also said its key services, including the Paytm app, Paytm UPI, Paytm QR, Soundbox, card machines, and Payment Gateway, will continue to operate uninterrupted despite regulatory action by the Reserve Bank of India against its associate entity, Paytm Payments Bank Limited.
The company had earlier clarified in its filing that its broader ecosystem, including Paytm Gold and Paytm Money, remains unaffected and will continue to operate normally.
