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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 on Tuesday.
The central bank in an official statement said the High Court, through orders dated July 8, 2026 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 Official Liquidator of the bank. 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. With effect from July 8, 2026, the Official Liquidator will also exercise all the powers of the Board of Paytm Payments Bank. RBI stated, "the Reserve Bank, in exercise of powers conferred under Sections 38 and 39 of the Banking Regulation Act 1949, made an application before the Hon'ble High Court of Delhi for winding up of PPBL and appointment of Shri Girikumar M Nair, former CGM of State Bank of India, as Liquidator of PPBL". The development follows the RBI's decision on April 24 this year to cancel the banking licence of Paytm Payments Bank 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 had said the bank's operations were conducted in a manner detrimental to the interests of the bank and its depositors and that the general character of its management was prejudicial to public interest. The regulator had also said the bank failed to comply with conditions stipulated in its payments bank licence. Following the licence cancellation, the RBI, exercising powers under Sections 38 and 39 of the Banking Regulation Act, approached the Delhi High Court seeking the winding up of the bank and the appointment of an official liquidator. The central bank had earlier clarified that despite the winding-up process, Paytm Payments Bank had sufficient liquidity to repay its entire deposit liabilities. With the High Court's order now in force, 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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