The Delhi High Court has ordered the winding up of Paytm Payments Bank Ltd (PPBL), marking the definitive end of the digital lender that served as the financial backbone for One 97 Communications.
The court also appointed Girikumar M Nair, former Chief General Manager of State Bank of India, as the liquidator to oversee the dissolution process.
This judicial order follows the Reserve Bank of India’s cancellation of the bank’s license in April, a regulatory move that had already severely restricted the entity's operations.
The appointment of Nair signals the transition from regulatory restriction to formal corporate dissolution, ensuring an orderly wind-down of assets and liabilities.
For investors in One 97 Communications, the ruling removes any lingering ambiguity regarding the viability of the payments bank segment, which had been a primary driver of the group's valuation.
The liquidation process will now focus on settling outstanding obligations and distributing remaining assets, a procedure that could take considerable time given the scale of the former operations.