Paytm has been in a lot of hot waters since the RBI directed the company to stop its Payment bank Services by 15 March 2024, and now the controversy has taken a significant turn as the founder and the chairman of Paytm Payments Bank, Mr. Vijay Shekhar Sharma, has resigned from his position.
Vijay Shekhar Sharma Resigns from Paytm Payments Bank
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PPBL has reconstituted its board of directors by appointing the ex-chairman of the Central Bank of India, Srinivasan Sridhar, former Executive Director of Bank of Baroda Ashok Kumar Garg, retired IAS officer Debendranath Sarangi, and former IAS officer Rajni Sekhri Sibal.
In a regulatory filing on Monday, the company also revealed that Vijay Shekhar Sharma has stepped down from his position at Paytm Payments Bank to enable the transition, and the company will start appointing a new chairman shortly.
Vijay Shekhar Sharma owns 51% of the stake at the company, while the rest has been with One 97 Communications. Surinder Chawla, the CEO of Paytm Payments Bank, has said that the expertise of our new board members will help us comply with the governance regulations. The decision to reconstitute the board of Paytm Payment Bank has come after RBI put a stop to the functioning of the PPBL for noncompliance with its norms.
RBI has ordered the company to stop accepting fresh deposits or any credit facility and carry out top-ups on any customer accounts, wallets, prepaid instruments, and cards for paying road tolls with the deadline of 29 February 2024, which has been extended to 15 March 2024. However, the users are still allowed to use their existing balance till it is exhausted but will not be able to add more funds to their paytm payment bank account.
Per some reports, the company plans to partner with Axis Bank, State Bank of India, HDFC Bank, and Yes Bank to smoothen the UPI process on the platform.
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