Paytm Founder Sharma Steps Down from Payments Bank Board

27 Feb 2024 , 09:00 AM

On February 26, One97 Communications (OCL), the parent company of Paytm, disclosed to the stock exchanges that Vijay Shekhar Sharma has resigned from the Board of Paytm Payments Bank Ltd (PPBL).

Sharma’s resignation aims to facilitate the reconstitution of the board, as stated by OCL. Additionally, OCL mentioned, ‘PPBL has informed us that they will commence the process of appointing a new chairman.’

A press release issued by One97 Communications Ltd highlighted the appointment of several new members to the PPBL Board, including former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal, all joining as independent directors.

Furthermore, the board will feature Arvind Kumar Jain, former Executive Director of Punjab & Sind Bank, as an Independent Director, along with Surinder Chawla, MD & CEO at Paytm Payments Bank.

Emphasizing support for PPBL’s decision to transition to a board comprising solely independent and executive directors, OCL stated, ‘OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee.’

Expressing appreciation for the new appointments, Surinder Chawla remarked, ‘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.’

This move is aimed at enhancing governance structures and operational standards, demonstrating PPBL’s commitment to compliance and best practices.

In regulatory developments, the Reserve Bank of India (RBI) had imposed significant business restrictions on PPBL on January 31, including a prohibition on accepting fresh deposits and conducting credit transactions after February 29, which was later extended to March 15 on February 16.

Currently, the National Payments Corporation of India (NPCI) is reviewing a request from One97 Communication to become a Third-Party Application Provider (TPAP) for the UPI channel, enabling the continued operation of the Paytm UPI app.