New Delhi, July 28, 2026 – Delhi High Court has ordered the closure of Paytm Payments Bank Limited (PPBL). The Reserve Bank of India (RBI) said on Tuesday (July 28) that the bank’s license had already been canceled due to continuous violation of rules, and this order is the first stage of the process of closing the bank. RBI said in a statement that the Delhi High Court, by orders dated July 8 and July 22, 2026, has directed the closure of Paytm Payments Bank under the parameters of the Banking Regulation Act, 1949 and the Companies Act, 2013.

SBI appointed official liquidator

The court heard former Chief General Manager of State Bank of India (SBI) Girikumar M. Nair has been appointed the official liquidator of Paytm Payments Bank. RBI said that they have been given all the rights prescribed under the Banking Regulation Act and the Companies Act.

Appointment of Liquidator:

The court heard former Chief General Manager of State Bank of India (SBI) Girikumar M. Nair (Girikumar M Nair) has been appointed as the Official Liquidator. He will look after all the assets of the bank, loan repayment and processing.

Reason for order:

Earlier on April 24, RBI had canceled the banking license of Paytm Payments Bank due to violation of rules and operations harmful to the interests of customers. After this, RBI had applied in Delhi High Court to close the bank.

Impact on Customers/Depositors:

Money safe: RBI has clarified that the bank has sufficient liquidity (financial funds) to repay the amount to all its depositors.

Paytm app will remain operational: This order is only for ‘Paytm Payments Bank’. The main Paytm app, UPI, recharge and other payment services will continue to operate as usual through other partner banks.