Paytm Payments Bank CEO Surinder Chawla Resigns

10 Apr 2024 , 10:55 AM

Surinder Chawla, the CEO and Managing Director of Paytm Payments Bank, submitted his resignation on April 8 in a filing with the stock exchange. Chawla is leaving her position to pursue greater career opportunities and personal reasons. According to the statement, he will be released from PPBL on June 26.

“Nearly all agreements between the company and PPBL have been terminated,” One 97 Communications reiterated in the release to the stock exchanges. The board of Paytm Payments Bank has been reconstituted with five independent directors, including an Independent Chairperson, and no nominees from the company.

According to One 97 Communications, it is still working with banking partners to improve UPI and merchant acquisition services.

Previously, Vijay Shekhar Sharma left the board of the financially troubled Paytm Payments Bank Ltd (PPBL) on February 26.

To allow for the rebuilding of the board, Paytm Payments Bank Board member Vijay Shekhar Sharma resigned, according to OCL, which also told the stock exchanges that “PPBL has informed us that they will commence the process of appointing a new chairman”.

Significant business restrictions were placed on PPBL by the RBI on January 31. Among these were prohibitions against taking in new deposits and from extending credit after February 29. The deadline was extended to March 15 on February 16.

The parent company of Paytm, One97 Communications Limited (OCL), received permission from the National Payments Corporation of India (NPCI) on March 14 to engage in UPI services as a Third-Party Application Provider (TPAP) under the multi-bank model.

The much expected license will enable Paytm to carry on providing its app customers with Unified Payments Interface (UPI) services when its banking division Paytm Payment bank Limited (PPBL) shuts down on March 15 as a result of regulatory action.

In accordance with the revised model, Paytm will now offer the payment service in collaboration with four additional institutions, who will serve as its Payment System Providers (PSP): Axis Bank, HDFC Bank, State Bank of India, and Yes Bank.

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