Vijay Shekhar Sharma, the founder of Paytm, has resigned from his position as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) ahead of the March 15th deadline for the bank’s closure.
PPBL has also reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, One 97 Communications Limited said in a regulatory filing on Monday.
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Paytm’s Parent Company Steps Away from PPBL; Vijay Shekhar Sharma Resigns
One 97 communications, which owns Paytm, said it supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee. Vijay Sharma has resigned from the board of PPBL to enable this transition. The bank will commence the process of appointing a new chairman, Paytm said.
PPBL has reconstituted its board of directors with the appointment of ex-Central Bank of India Chairman Srinivasan Sridhar; retired IAS (Indian Administrative Service) officer Debendranath Sarangi; former Executive Director of Bank of Baroda Ashok Kumar Garg; and ex IAS Rajni Sekhri Sibal. They have joined as independent directors.
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RBI Bans Paytm Payments Bank from Accepting New Deposits and Top-ups
The RBI has barred PPBL from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after March 15, 2024, in the wake of persistent non-compliances and material supervisory concerns.
The action was taken due to non-compliance of various regulatory guidelines, including those related to know-your-customer (KYC) and not maintaining a Chinese wall with the group company, One97 Communications.
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