Delhi High Court Orders Winding Up of Paytm Payments Bank; Official Liquidator Takes Charge

RBI says former SBI executive Girikumar M. Nair appointed to oversee liquidation after banking licence cancellation

The Voice of Chandigarh 

The Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL), nearly three months after the Reserve Bank of India (RBI) cancelled the bank’s licence to operate.

In an official statement, the RBI said the High Court, through its 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 Shri Girikumar M. Nair, former Chief General Manager of the State Bank of India (SBI), as the Official Liquidator to oversee the bank’s liquidation process.

The RBI had revoked PPBL’s banking licence on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949, with effect from the close of business on the same day. Following the licence cancellation, the central bank moved the Delhi High Court under Sections 38 and 39 of the Act, seeking the winding up of the bank and the appointment of a liquidator.

According to the RBI, the Official Liquidator will exercise all powers provided under the Banking Regulation Act, 1949, along with the applicable provisions of the Companies Act, 2013. As per the court’s order, Mr. Nair assumed all the powers of PPBL’s Board of Directors with effect from July 8, 2026.

The appointment of the Official Liquidator formally begins the legal liquidation process, under which the affairs of Paytm Payments Bank will be administered in accordance with the directions of the court and the applicable laws.