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RBI ordered the winding up of Paytm Payments Bank Limited (PPBL) following a Delhi High Court order, after having earlier cancelled its banking licence.
Girikumar Nair, former Chief General Manager of SBI, has been appointed Official Liquidator to oversee the process.
The winding-up is being carried out under the Banking Regulation Act, 1949 and the Companies Act, 2013.
RBI has clarified that PPBL has sufficient liquidity to repay all its deposit liabilities, so depositors' funds remain safe.
A specialised RBI-licensed bank category introduced to promote financial inclusion. Payments banks can accept deposits (up to the RBI-prescribed limit), offer savings/current accounts, issue debit cards, and enable digital payments — but cannot extend loans or issue credit cards.
Simple Analogy: A payments bank is like a bank that can hold and move your money digitally, but cannot lend it out.
Banking Awareness > RBI Regulatory Actions
GS Paper III > Indian Economy > Banking & Financial Sector Regulation
A person appointed to oversee the winding-up of a company, settling its liabilities and protecting stakeholder interests