Aditya Birla Idea Payments Bank heads for liquidation

The Reserve Bank of India said that Aditya Birla Idea Payments Bank is heading for liquidation post application by the lender for voluntarily winding up.

“We advise that on a voluntarily winding up application by Aditya Birla Idea Payments Bank Limited, the Bombay High Court has passed an order on September 18, 2019,” said RBI in a notification.

The apex bank notified 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.

In July this year, Aditya Birla Idea Payments Bank had made  announcement pertaining to winding up its business on account of “unanticipated developments” that made its economic model “unviable”.

Till date around four names in payment banking space have pulled their shutters.

Prior to this, Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank Ltd and Telenor Financial Services had notified their exit from payments banking space.

In February 2018, Aditya Birla Idea Payments Bank had become the fourth lender to start payments banking operations post  the issuance of licences to 11 players by the RBI in August 2015.

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