Paytm’s Vijay Shekhar Sharma Relinquishes Role on Payments Bank Board Following RBI Directive

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Following an order from the Reserve Bank of India (RBI) mandating the closure of Paytm’s banking arm by March 15 due to ongoing compliance issues, there has been a significant impact on Paytm’s market performance.

In a regulatory disclosure reported by PTI, Paytm stated, “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 RBI’s directive compelled Paytm Payments Bank Limited (PPBL) to cease operations by mid-March due to persisting compliance deficiencies and substantial supervisory concerns, resulting in a downturn in Paytm’s shares.

As part of the restructuring, Srinivasan Sridhar, former Chairman of the state-owned Central Bank of India, and Ashok Kumar Garg, former Executive Director of Bank of Baroda, alongside two retired Indian Administrative Service (IAS) officers, are set to join Paytm’s board, as per the company’s filing with the stock exchange.

Surinder Chawla, CEO of Paytm Payments Bank, emphasized the pivotal role the incoming board members will play in steering the company towards bolstering its governance frameworks and operational excellence, underscoring a firm commitment to adherence and best practices.

Paytm has voiced its support for the decision to transition to a board composed solely of independent and executive directors. Additionally, it announced that its founder and nominee, Vijay Shekhar Sharma, will step down from the board to facilitate the transition process.

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