The Delhi High Court has approved the formal closure of Paytm Payments Bank, taking the bank one step closer to being completely shut down.
The Reserve Bank of India (RBI) announced that the liquidation process has now officially begun.
The court has appointed Girikumar M. Nair, a former State Bank of India (SBI) official, as the official liquidator. He will handle the bank’s assets and oversee all legal and financial procedures related to the closure.
Former SBI Official to Handle Liquidation
According to the RBI, Girikumar M. Nair has been managing the liquidation process since July 8. During this period, he will have all the powers that were previously held by the bank’s board of directors.
His role includes managing the bank’s remaining assets, settling liabilities, and completing all legal formalities required to wind up the bank.
Why Was Paytm Payments Bank Closed?
The RBI cancelled Paytm Payments Bank’s banking licence on April 24, 2026. After the licence was revoked, a petition was filed in the Delhi High Court seeking the bank’s formal closure.
The central bank said the bank’s operations were being conducted in a way that could negatively affect the interests of customers and depositors, making closure necessary.
Long History of Regulatory Action
Paytm Payments Bank received its banking licence in 2015 and quickly became one of India’s largest payments banks.
However, regulatory action began in March 2022, when the RBI stopped the bank from adding new customers due to supervisory concerns.
Later, in January 2024, the bank was barred from accepting fresh deposits because of continued non-compliance with RBI rules.
With the Delhi High Court’s latest order, the bank has now entered the final stage of its closure process.