New Delhi: Vijay Shekhar Sharma has officially resigned from his position as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL), leading to a reconstitution of the bank’s board. The decision comes as the Reserve Bank of India (RBI) has prohibited PPBL from accepting deposits and credits from any customer beyond March 15 due to persistent non-compliances and ongoing material supervisory concerns within the bank. This move underscores the regulatory challenges and compliance issues faced by PPBL, necessitating significant changes within the organization to address these concerns effectively.
Paytm Payments Bank Limited Board Reconstituted
Paytm Payments Bank Limited (PPBL) has announced the reconstitution of its Board of Directors by appointing notable individuals, as detailed in a regulatory filing on Monday. Among the newly appointed Independent Directors are Srinivasan Sridhar, former Chairman of the Central Bank of India, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal. These appointments signal Paytm’s commitment to strengthening its governance structure and addressing regulatory concerns. It’s worth noting that One 97 Communications Ltd (OCL) remains the owner of the Paytm brand amidst these changes, reported PTI.
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 filing said. OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee, it added. PPBL’s future business is to be led by a reconstituted Board, the filing stated, as per PTI.
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According to a NDTV report, Sharma owns a 51 per cent stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.
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