Former SBI CGM to liquidate Paytm Payments Bank Ltd.
Delhi High Court appointed Girikumar M. Nair as liquidator of Paytm Payments Bank after the RBI cancelled the bank’s licence three months earlier.
- RBI licences banks to operate; RBI can cancel a bank’s licence when regulatory conditions fail.
- Bank liquidation uses a liquidator to wind up the bank’s affairs through legal powers.
- Delhi High Court can appoint a liquidator to carry out liquidation steps after RBI licence cancellation.
- Banking Regulation Act, 1949 gives banking-focused liquidation powers; Companies Act, 2013 adds related company liquidation provisions.
What happened
The Delhi High Court appointed Girikumar M. Nair, a former State Bank of India (SBI) chief general manager, as the liquidator of Paytm Payments Bank Ltd. The appointment followed the RBI’s decision to cancel the bank’s licence three months earlier.
The RBI’s direction specified the legal basis for the liquidator’s powers. The liquidator is to exercise powers under the Banking Regulation Act, 1949 and the relevant provisions of the Companies Act, 2013.
UPSC may use this case to test how RBI licence cancellation triggers legal winding-up powers, and how courts supervise key insolvency steps for a bank-like financial institution.
