Ex-SBI Chief General Manager Appointed to Liquidate Paytm Payments Bank
The Delhi High Court has designated Girikumar M. Nair to oversee the winding up of Paytm Payments Bank following regulatory interventions. This appointment follows the central bank's decision to revoke the entity's license due to non-compliance.
Judicial Move Finalizes Dissolution Process
The Delhi High Court has appointed Girikumar M. Nair, a former Chief General Manager of the State Bank of India (SBI), to manage the liquidation of Paytm Payments Bank Limited (PPBL). This judicial order, effective July 8, 2026, transfers all powers previously held by the bank's board to the Official Liquidator.
Regulatory Foundations and Compliance Failures
The Reserve Bank of India (RBI) initiated the winding-up process after determining that the bank's operations posed risks to depositors. A circular dated April 24, 2026, confirmed the cancellation of its banking license. The central bank cited significant failures in meeting regulatory standards, specifically:
- Violations of Section 22 (3) (b) of the Banking Regulation Act, 1949, which mandates the protection of depositor capital.
- Engagement in activities considered detrimental to the interests of the institution and its customers.
- Unresolved issues regarding the onboarding of new clients, which the regulator had previously ordered the bank to cease.
Statutory Authority of the Liquidator
As the Official Liquidator, Nair will operate under the legal framework established by the Banking Regulation Act, 1949 and the Companies Act, 2013. The RBI stated that this transition ensures the winding-up process adheres to strict legal protocols following the bank's inability to maintain compliance with federal financial laws.
Source: The Hindu — Business
