- The RBI had cancelled the banking licence of Paytm Payments Bank with effect from 24 April 2026 under Section 22(4) of the Banking Regulation Act, 1949.
- The licence was cancelled because of persistent regulatory non-compliance, weaknesses in customer due diligence, technology-related concerns and risks to depositors’ interests
- Through orders dated 8 July and 22 July 2026, the Delhi High Court directed that Paytm Payments Bank be wound up under the Banking Regulation Act, 1949 and the Companies Act, 2013.
- The Court appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India, as the Official Liquidator of Paytm Payments Bank.
- The Official Liquidator will take control of the bank’s assets, records and management and supervise the settlement of liabilities and claims during the closure process.
- The powers of the bank’s Board of Directors were transferred to the Official Liquidator from 8 July 2026, and the winding-up process will continue under the supervision of the Delhi High Court.
- The winding-up order applies to Paytm Payments Bank Limited, not automatically to the wider Paytm UPI and digital-payments business operated by One 97 Communications.
Question:
Q1. Which court ordered the winding up of Paytm Payments Bank Limited in July 2026?
a) Supreme Court of India
b) Bombay High Court
c) Delhi High Court
d) National Company Law Tribunal
Answer: c) The Delhi High Court directed that Paytm Payments Bank be wound up under the Banking Regulation Act, 1949 and the Companies Act, 2013.
