Aditya Birla Idea Payments Bank headed for liquidation; Bombay High Court appoints liquidator

The Reserve Bank on Monday said Aditya Birla Idea Payments Bank is headed for liquidation post application by the company for voluntarily winding up.

RBI said that the Bombay High Court has appointed Vijaykumar V Iyer, Senior Director of Deloitte Touche Tohmatsu India LLP as the liquidator of Aditya Birla Idea Payments Bank.

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"We advise that on a voluntarily winding up application by Aditya Birla Idea Payments Bank Limited, the Hon'ble Bombay High Court has passed an order on Sep 18 and has appointed Shri Vijaykumar V. Iyer, Senior Director of Deloitte Touche Tohmatsu India LLP as the Liquidator of Aditya Birla Idea Payments Bank Limited," the RBI said.

Earlier in July this year, Aditya Birla Idea Payments Bank had announced winding up its business on account of "unanticipated developments" that made its economic model "unviable".

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Until now a total of four players in payment banking space have shut shops.

Before this, Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank Ltd and Telenor Financial Services had announced to exit the payments banking space.

In February 2018, Aditya Birla Idea Payments Bank had become the fourth entity to begin payments banking operations since the issuance of licences to 11 firms by the RBI in August 2015.