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Paytm Payments Bank: License canceled three months ago, now Delhi High Court orders – close Paytm Payments Bank.
Paytm Payments Bank: Reserve Bank of India (RBI) has said that Delhi High Court has ordered the closure of Paytm Payments Bank Limited (PPBL). RBI had canceled the banking license of PPBL in April 2026 due to violation of regulatory standards. The central bank had found the functioning of PPBL to be prejudicial to the interests of depositors.
New Delhi: Delhi High Court has ordered the closure of Paytm Payments Bank Limited (PPBL). With this the functioning of this payments bank will end. This order has come three months after the Reserve Bank of India (RBI) canceled the banking license.
Through orders dated July 8 and July 22, the court directed that PPBL be closed under the Banking Regulation Act, 1949.
Former CGM of SBI appointed liquidator
The court appointed former Chief General Manager of State Bank of India (SBI) Girikumar M Nair as the official liquidator of PPBL. Since July 8, Nair has been exercising all the powers of the bank’s board. He will oversee the process of closing the bank. This includes settlement of liabilities and returning money to depositors.
RBI had canceled the banking license of PPBL with effect from April 24. Due to this cancellation the company could not do banking work. Nor could banks carry out any additional activities permitted under the law.
Central Bank had reached Delhi High Court
After the license was cancelled, the Central Bank reached Delhi High Court. Demanded closure of PPBL and appointment of Nair as liquidator.
While canceling the license, RBI had said that PPBL had sufficient liquidity (cash or easily convertible assets) to repay all its deposit liabilities during the closure process.
The regulator had given several reasons for canceling the license. This also included the way the bank worked. He had termed this as harmful for the interests of the bank and its depositors. He had also said that the general attitude of the management of PPBL was against the depositors and public interest. The bank had failed to comply with the conditions stipulated in its payments bank license.
What happened before this?
This action in April came after long-standing regulatory restrictions on PPBL. In January 2024, RBI had cited serious concerns related to continuous non-compliance of rules and supervision. In doing so, the bank was barred from taking new deposits, conducting credit transactions or top-up customer accounts, wallets, FASTag and other prepaid instruments after March 15.
This closure order applies to Paytm Payments Bank. This does not automatically stop services offered through the larger Paytm platform using other banking partners.
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The post Paytm Payments Bank: License canceled three months ago, now Delhi High Court orders – close Paytm Payments Bank. first appeared on informalnewz.
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