Delhi High Court Appoints Former SBI CGM Girikumar M. Nair as Official Liquidator for Paytm Payments Bank
The Delhi High Court has appointed former State Bank of India (SBI) Chief General Manager (CGM) Girikumar M. Nair as the Official Liquidator for Paytm Payments Bank. Three months earlier, the Reserve Bank of India (RBI) had cancelled the bank’s licence. Recently, the Reserve Bank of India (RBI) announced that the Delhi High Court has ordered the winding up of Paytm Payments Bank Limited (PPBL).
According to an RBI circular, the banking licence of Paytm Payments Bank was cancelled on April 24, 2026. The RBI also directed the bank to stop onboarding new customers after finding serious issues in its operations.
RBI Cites Violations
The RBI said that the bank’s affairs were being conducted in a manner that was harmful to the interests of the bank and its depositors. It also found that the bank was not complying with Section 22(3)(b) of the Banking Regulation Act, 1949, which is meant to protect depositors’ money.
Following the licence cancellation, the RBI approached the Delhi High Court to begin the winding-up process of Paytm Payments Bank. The court appointed Girikumar M. Nair as the Official Liquidator to oversee the process.
Official Liquidator Takes Charge
The RBI said that, under the court’s order, the Official Liquidator will exercise all powers provided under the Banking Regulation Act, 1949, along with the relevant provisions of the Companies Act, 2013. From July 8, 2026, the Official Liquidator has taken over all the powers of the Board of Directors of Paytm Payments Bank and will manage the liquidation process.
Why Liquidator is appointed?
An official liquidator is appointed when a bank or company is being wound up (closed permanently). The liquidator takes control of the institution’s assets and liabilities, settles claims of creditors and depositors, sells assets if required, and distributes the available money according to the law.
In the case of Paytm Payments Bank, the Reserve Bank of India (RBI) cancelled its banking licence. Once the licence was cancelled, the bank could no longer operate as a banking company. Therefore, the Delhi High Court appointed former SBI Chief General Manager Girikumar M. Nair as the Official Liquidator to oversee the legal liquidation process.
The liquidator’s key responsibilities include:
- Taking charge of the bank’s assets, records, and accounts.
- Verifying and settling claims from depositors, creditors, employees, and other stakeholders.
- Recovering any outstanding dues owed to the bank.
- Selling assets, if necessary, to generate funds.
- Distributing the proceeds in accordance with the Banking Regulation Act, 1949 and the court’s directions.
- Completing the winding-up process and ensuring compliance with legal requirements.
In simple terms, the liquidator acts as an independent officer appointed by the court to ensure that the closure of the bank is carried out in an orderly, transparent, and lawful manner, while protecting the interests of depositors and other stakeholders.
