Court approves RBI’s petition after banking licence was revoked over regulatory non-compliance
Mumbai (Economy India): The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), acting on a petition filed by the Reserve Bank of India (RBI) after the regulator cancelled the bank’s licence earlier this year.
The RBI confirmed on Tuesday that the High Court had passed the order to wind up the payments bank.
RBI Had Cancelled Licence in April
In April 2026, the RBI revoked the banking licence of Paytm Payments Bank, citing non-compliance with regulatory norms.
The central bank had stated that the bank’s affairs were being conducted in a manner detrimental to the interests of its depositors, prompting regulatory intervention.
Winding-Up Petition Approved
Following the licence cancellation, the RBI announced that it would approach the Delhi High Court seeking the winding up of the bank under the applicable banking laws.
The High Court has now approved the RBI’s request, formally ordering the winding up of Paytm Payments Bank.
Regulatory Action
The move marks the final stage of regulatory action initiated by the RBI after identifying serious governance and compliance issues at the payments bank.
The winding-up process will now proceed in accordance with the directions of the court and applicable legal provisions.
Key Highlights
| Particulars | Details |
|---|---|
| Institution | Paytm Payments Bank Ltd (PPBL) |
| Court | Delhi High Court |
| Decision | Ordered winding up of PPBL |
| Regulator | Reserve Bank of India (RBI) |
| Licence Status | Cancelled in April 2026 |
| Reason | Regulatory non-compliance and depositor interest concerns |
What It Means
The court’s order represents a significant development in India’s banking and fintech sector. It reinforces the RBI’s regulatory oversight over licensed financial institutions and underscores the importance of compliance, governance, and depositor protection in the banking system.
(Economy India)
