Paytm Payments Bank is entering formal liquidation, but the Paytm app has not been ordered to close. The Delhi High Court approved the bank’s winding up after the Reserve Bank of India cancelled its licence in April 2026. Customers now want to know where their money stands, how withdrawals may work and whether UPI payments will continue.
The answer depends on whether funds are held in a Paytm Payments Bank account, an old Paytm Wallet or another bank account linked to the app.
The case closes a regulatory path that began in March 2022, when new customer onboarding was stopped, and tightened in January 2024 with curbs on deposits, wallet loads and several payment services. The final court order now shifts attention from normal banking access to orderly repayment and record checking.
What The Delhi High Court Ordered
According to the RBI’s July 28 winding-up notice, the High Court passed orders on July 8 and July 22, 2026, directing Paytm Payments Bank Limited to be wound up. Former State Bank of India chief general manager Girikumar M. Nair has been appointed official liquidator and has exercised the board’s powers since July 8.
The order follows the April licence cancellation. RBI said the bank’s affairs and management were harmful to depositors and public interests. It also said PPBL had enough liquidity to repay its entire deposit liability. Winding up, therefore, does not mean balances have disappeared, although repayment may require verification and a formal claim.
In a fresh July 28 step, the court allowed Nair to appoint AZB & Partners as legal adviser. A preliminary report is due within two months.
What Happens To Deposits And Bank Accounts?
Savings and current-account balances held directly with PPBL fall under the liquidator’s control. Customers should retain statements, their registered mobile number, PAN, identity proof and alternative bank details. The liquidator may announce a repayment window or claim method. Ignore anyone demanding money for quicker release.
The DICGC deposit insurance guide covers principal and interest up to ₹5 lakh per depositor, held in the same capacity and right, as of the licence-cancellation or liquidation date. PPBL’s DICGC registration ended on April 24, 2026, after its licence was cancelled. That does not remove protection attached to eligible deposits on the relevant date.
RBI has separately said the bank can repay its full deposit liability. This indicates account holders may recover amounts above ₹5 lakh through liquidation, subject to asset availability, verification and court-supervised settlement. It does not guarantee immediate payment.
Salary credits, subsidies and standing instructions should be moved elsewhere. The earlier RBI customer FAQ had already stopped fresh deposits and most credits from March 15, 2024.
Will Paytm Wallet, UPI, QR And Soundbox Still Work?
The Paytm app and PPBL are separate operations. UPI transfers using an account held with another bank can continue because money moves through that linked account. Paytm’s support guidance says app-based sending and receiving now routes through linked bank accounts rather than the old wallet.
An old Paytm Wallet balance needs closer attention. Top-ups stopped in March 2024, and the Paytm Wallet support page tells customers with remaining funds to use or withdraw them where permitted. With liquidation underway, users should save wallet statements and follow fresh directions from the liquidator. Wallet balances are prepaid funds, so they should not automatically be treated like insured savings deposits.
Paytm QR, Soundbox, card machines and gateway services can continue when settlements reach another bank. Any device still linked to PPBL should be changed. PPBL-issued FASTags and mobility cards cannot be recharged, so holders should seek closure and refunds.
What Customers Should Do Now
Customers need not delete the Paytm app, but they should separate its payment services from PPBL.
- Check whether the balance belongs to PPBL, a wallet or another linked bank.
- Download statements, screenshots and transaction records before access changes.
- Shift salaries, subsidies, EMIs, subscriptions and merchant settlements to another bank.
- Follow the bank, liquidator, RBI and DICGC claim portal for verified directions.
- Never share an OTP, UPI PIN or screen access for deposit release.
Frequently Asked Questions
Will Paytm UPI stop working after the bank’s winding up?
No, UPI linked to another partner bank can continue through the Paytm app without interruption.
Are Paytm Payments Bank deposits lost after liquidation begins?
No, RBI says sufficient liquidity exists, while repayments will follow the liquidator’s verified settlement process.
Does DICGC cover every Paytm Payments Bank customer balance?
Eligible bank deposits receive cover up to ₹5 lakh; wallet balances follow separate prepaid-fund rules.
Can customers still add money to an old Paytm Wallet?
No, wallet top-ups stopped in March 2024, and remaining funds require withdrawal or official claims.
Should merchants replace Paytm QR codes and Soundboxes immediately?
Only devices settling into PPBL need changes; those linked elsewhere can generally continue receiving payments.
