Delhi High Court orders Paytm Payments Bank to be wound up
Paytm Payments Bank will be liquidated after the Delhi High Court upheld the RBI’s licence cancellation. RBI-appointed liquidator Girikumar M Nair will assume board powers; the bank reported ₹1,395.22 crore in customer deposits as of March 31, 2025.
What happened
Delhi High Court ordered Paytm Payments Bank wound up after RBI cancelled its licence. RBI appointed former SBI executive Girikumar M Nair as liquidator, who
Key facts
- 51% stake held by Vijay Shekhar Sharma
- 49% stake held by One97 Communications
- ₹1,395.22 crore customer deposits as of March 31, 2025
- ₹33.13 crore total gift instruments
- March 2022 new-customer onboarding ban
- February 29, 2024 deposit and credit transaction restrictions
- July 8, 2026 Delhi High Court winding-up order
- July 22, 2026 related court order
Why this matters
Banks, fintechs, and payment platforms may find opportunities to capture displaced Paytm Payments Bank customers, merchant relationships, and service volumes as liquidation proceeds.
What to watch
- Liquidator notice specifying claim filing deadlines, insured-deposit treatment, repayment sequencing, and expected timelines.
- Actual depositor payout speed and the volume of disputed, dormant, or unverified accounts.
- Paytm merchant retention, UPI transaction trends, payment-services revenue, and partner-bank settlement continuity.
- Any fresh RBI, NPCI, or court communication affecting Paytm-branded UPI, wallet, merchant acquiring, or affiliated entities.
- Recovery value of Paytm Payments Bank assets versus depositor and other creditor claims.
- Competitor campaign intensity and evidence of merchant QR or consumer payment-volume migration.
- Liquidator assumes Paytm Payments Bank board powers, freezes or rationalizes remaining operations, and publishes a depositor claims and repayment framework.
- One97 Communications intensifies messaging that Paytm UPI, merchant QR acceptance, and payment services operate through external banking partners rather than the wound-up bank.
- Merchants with legacy Paytm Payments Bank-linked settlement arrangements are migrated to partner-bank rails or competing acquiring platforms.
- Competing payment apps and banks target affected Paytm users and merchants with account-switching, QR deployment, and settlement incentives.
- Regulators apply stricter scrutiny to fintech-bank partnerships, customer-fund segregation, KYC controls, and governance structures across the sector.