The Delhi High Court has approved the formal closure of Paytm Payments Bank, marking the final stage of the bank’s shutdown process.
The Reserve Bank of India (RBI) announced that the court has appointed an official liquidator to manage the bank’s remaining assets and complete the closure process.
Former SBI Official Appointed as Liquidator
According to the RBI, the Delhi High Court has appointed Girikumar M. Nair, a former State Bank of India (SBI) official, as the official liquidator for Paytm Payments Bank.
He has been overseeing the liquidation process since July 8. During this period, he will have all the powers of the bank’s board of directors
and will be responsible for handling the bank’s assets, liabilities, and other legal procedures related to the closure.
Why Was Paytm Payments Bank Closed?
The RBI had cancelled Paytm Payments Bank’s banking license on April 24, 2026.
After the license was revoked, a petition was filed in the Delhi High Court seeking the bank’s formal closure, which has now been approved.
The central bank said the bank’s operations were being carried out in a way that could negatively affect the interests of both the bank and its depositors.
A Long Regulatory Journey
Paytm Payments Bank received its banking license 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 central bank barred the bank from accepting fresh deposits because of continued non-compliance with regulatory rules.
With the Delhi High Court’s latest order, the legal process to shut down Paytm Payments Bank has now entered its final phase.
