This comes after the RBI revoked the bank’s licence in April 2026, citing that its management was “detrimental to depositors’ interests.” Even though Paytm’s board initially agreed to voluntarily wind up, it later chose not to propose any alternate plan to the RBI; leading the court to act. The RBI confirmed that all depositors will be repaid in full, thanks to sufficient liquidity. A liquidator has been appointed, with ₹5.5 lakh/month from bank assets to manage the closure. For aspirants preparing for banking or finance-related government exams, this case is a textbook example of how RBI enforces regulatory compliance; and what happens when institutions fail to meet legal and ethical standards.