Vijay Shekhar Sharma Quits as Chairman Of Paytm Payments Bank Before March 15 Deadline

Vijay Shekhar Sharma stepped down as chairman of Paytm Payments Bank as the embattled company overhauls its board in the wake of a central bank clampdown.

The bank has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda

Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal. They have recently joined as Independent Directors, Paytm said in an exchange filing.

Sharma owns a 51% stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.

The action against Paytm Payments Bank followed “serious supervisory concerns”, including inadequate customer identify and a lack of arms length distance with Paytm, sources had told Reuters.

The Reserve Bank of India has asked the banking unit to wind down its operations by March 15 due to persistent non-compliances and continued material supervisory concerns, triggering a meltdown in Paytm’s stock.

Surinder Chawla, MD & CEO at Paytm Payments Bank said, “We welcome the

appointment of Shri Srinivasan Sridhar, Shri Debendranath Sarangi, Shri Ashok Kumar Garg, and Smt Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL’s journey. Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices.”

In a bid to prevent any disruptions in the payment ecosystem, the Reserve Bank of India (RBI) on Friday asked the National Payments Corporation of India (NPCI) to examine the possibility of migrating Paytm Payments Bank customers using the UPI handle ‘@paytm’ to 4-5 other banks. The central bank came out with additional steps for the benefit of customers, wallet holders and merchants who are availing banking services from Paytm Payments Bank, which has been barred from accepting deposits and credits after March 15, 2024.

(With inputs from Reuters, PTI)