The Reserve Bank of India has said that the operations of Paytm Payments Bank Limited will be wound up and has appointed former Chief General Manager of SBI, Girikumar Nair, as the Official Liquidator. The central bank said the decision follows the orders of the Delhi High Court allowing the winding-up of the bank as per the provisions of the Banking Regulation Act, 1949, and the Companies Act, 2013.

The RBI had announced the cancellation of the banking licence of Paytm Payments Bank, citing serious regulatory violations and concerns over the manner in which the bank’s affairs were conducted. The banking regulator had earlier clarified that despite the winding-up process, Paytm Payments Bank had sufficient liquidity to repay its entire deposit liabilities.