New Delhi [India], July 28 (ANI): The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL) and appointed former State Bank of India (SBI) Chief General Manager Girikumar M. Nair as the official liquidator, the Reserve Bank of India (RBI) said Tuesday.
In an official statement, the RBI said the High Court, through orders dated July 8 and July 22, 2026, directed that PPBL be wound up under the provisions of the Banking Regulation Act, 1949, read with the Companies Act, 2013.
The court also appointed Girikumar M. Nair as the bank’s official liquidator. According to the RBI, the official liquidator will exercise all powers prescribed under the Banking Regulation Act, along with the applicable provisions of the Companies Act. Effective July 8, 2026, the official liquidator will also exercise all the powers of the Board of Paytm Payments Bank.
The RBI said it had approached the Delhi High Court under Sections 38 and 39 of the Banking Regulation Act, 1949, seeking the winding up of PPBL and the appointment of Girikumar M. Nair, a former SBI Chief General Manager, as the bank’s liquidator.
The development follows the RBI’s decision on April 24 to cancel Paytm Payments Bank’s banking licence under Section 22(4) of the Banking Regulation Act, citing serious regulatory violations and concerns over the manner in which the bank’s affairs were conducted.
At the time, the RBI said the bank’s operations were being conducted in a manner detrimental to the interests of the bank and its depositors and that the overall character of its management was prejudicial to the public interest. The regulator also said the bank had failed to comply with conditions stipulated in its payments bank licence.
Following the licence cancellation, the RBI exercised its powers under Sections 38 and 39 of the Banking Regulation Act and petitioned the Delhi High Court to wind up the bank and appoint an official liquidator.
The central bank had earlier clarified that, despite the winding-up process, Paytm Payments Bank had sufficient liquidity to repay all of its deposit liabilities.
With the High Court’s order now in effect, the liquidation process of Paytm Payments Bank will proceed under the supervision of the official liquidator in accordance with the Banking Regulation Act and the Companies Act. (ANI)
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