Vijay Shekhar Sharma, the founder of Paytm, has stepped down from his position as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) as part of a significant restructuring, ahead of the March 15 deadline for winding down its operations.
Vijay Shekhar Sharma, the founder of Paytm, has announced his resignation from the position of part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) in anticipation of the March 15 deadline for winding down the bank’s operations.
One 97 Communications Limited reported in a regulatory filing on Monday that PPBL has revamped its Board of Directors by appointing Srinivasan Sridhar, former Chairman of Central Bank of India, Debendranath Sarangi, retired IAS officer, Ashok Kumar Garg, former Executive Director of Bank of Baroda, and Rajni Sekhri Sibal, former IAS officer.
“The company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman,” the filing said.
Sharma owns a 51% stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.
The new board members’ expertise will be “pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices”, Paytm Payments Bank CEO Surinder Chawla said.
The decision arises amidst the RBI’s stringent measures against the payments bank due to ongoing non-compliance issues and supervisory apprehensions. The regulatory authority had instructed the fintech company to cease its banking operations after February 29, subsequently extending the deadline to March 15.
“The comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the RBI said in a statement on its website.
