Paytm Payments Bank set for winding up after RBI licence revocation

Paytm Payments Bank (PPBL) is to beryllium coiled up, months aft the Reserve Bank of India (RBI) cancelled its banking licence implicit regulatory breaches, the cardinal slope said.

The RBI had withdrawn PPBL's licence successful April 2026, citing continued non-compliance with regulatory requirements.

At the time, it said the bank's affairs were being conducted successful a mode detrimental to the interests of depositors and that it would question a winding-up order.

In a statement, the RBI said, "By an Order dated July 08, 2026 work with the Order dated July 22, 2026, the Hon'ble High Court of Delhi has ordered that PPBL beryllium coiled up nether the provisions of the Banking Regulation Act, 1949 work with the provisions of the Companies Act, 2013."

The cardinal slope said Girikumar Nair, erstwhile main wide manager of State Bank of India, has been appointed arsenic the authoritative liquidator of PPBL.

According to the RBI, the authoritative liquidator has been authorised to workout each powers disposable nether the Banking Regulation Act, 1949, on with applicable provisions of the Companies Act, 2013.

The regulator besides said the authoritative liquidator has been exercising each powers of PPBL's committee from 8 July 2026.

Paytm Payments Bank, an subordinate of Vijay Shekhar Sharma-led fintech institution Paytm, had faced repeated regulatory enactment implicit the past fewer years.

In March 2022, the RBI barred the slope from taking connected caller customers aft identifying "material supervisory concerns".

It besides directed the slope to name an IT audit steadfast to transportation retired a broad reappraisal of its exertion systems.

The restrictions tightened further successful 2024. On January 31 and February 16 that year, the RBI imposed further curbs, including a prohibition connected caller deposits, credits and top-ups successful existing lawsuit accounts, prepaid instruments and wallets.

When it revoked the licence earlier this year, the RBI said the bank's affairs were being conducted successful a mode detrimental to some its ain interests and those of its depositors.

"Paytm Payments Bank acceptable for winding up aft RBI licence revocation" was primitively created and published by Retail Banker International, a GlobalData owned brand.