Paytm Payments Bank Limited (PPBL) has undergone board reconstitution, leading to Vijay Shekhar Sharma’s resignation as part-time non-executive Chairman, as disclosed by One 97 Communications Ltd (OCL), Paytm’s parent company, on Monday.
New Board Composition
The board now includes former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal as Independent Directors. Additionally, Vijay Shekhar Sharma has stepped down from the Board of Paytm Payments Bank to facilitate this transition, with PPBL initiating the process to appoint a new Chairman, according to OCL’s statement.
Beyond these, the board has former Executive Director of Punjab & Sind Bank Shri Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO at Paytm Payments Bank.
Regulatory Action for Paytm
This development follows the recent RBI directive that barred Paytm Payments Bank from accepting deposits and credits from customers after March 15, citing persistent non-compliance and supervisory concerns.
Partnership and transactions of Paytm
Amidst this regulatory action, Reuters reported today that Paytm is in talks with Axis Bank, HDFC Bank, State Bank of India (SBI), and Yes Bank to facilitate transactions via unified payments interface (UPI). Paytm aims to commence this partnership with major banks capable of handling high transaction volumes seamlessly.
Continuity Measures
Presently, Paytm ranks as the third-largest app for UPI payments in India, processing 1.6 billion monthly transactions, as per NPCI data. Notably, on February 16, One97 Communications shifted its nodal account to Axis Bank from Paytm Payments Bank, ensuring continuity of Paytm QR, Soundbox, and card machine operations.
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