Delhi High Court Orders Winding Up of Paytm Payments Bank

The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited and appointed a liquidator, marking the final stage of closure for the financial institution after regulators canceled its license earlier this year. The court appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India, as the official liquidator to oversee the process.

According to the Reserve Bank of India, the High Court issued orders on July 8 and July 22 directing that the payments bank be wound up under the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013. Under these orders, Nair assumed all powers previously held by the bank's board of directors effective July 8. As liquidator, he is responsible for taking control of the bank's remaining affairs, safeguarding its records and assets, addressing outstanding claims, and carrying out the liquidation process under the court's supervision.

This legal action follows the RBI's decision on April 24 to cancel the bank's license. At that time, the central bank stated it had found the affairs of the bank were being conducted in a manner detrimental to the interests of the bank and its depositors. The...