Founder of digital payment platform Paytm Vijay Shekhar Sharma on Monday resigned as part-time non-executive chairperson and board member of Paytm Payments Bank Limited.
The development comes after the Reserve Bank of India on January 31 barred Paytm Payments Bank from accepting fresh deposits or top-ups in any customer accounts, wallets or prepaid instruments after February 29. The deadline was later extended to March 15.
The central bank has also directed that from March 15, Paytm Payments Bank should not provide any other banking services such as Aadhaar Enabled Payment System, Immediate Payment Service, Bharat Bill Payment Operating Unit and Unified Payments Interface.
The central bank said that a comprehensive system audit report and subsequent reports by external auditors “revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action”.
On Monday, One 97 Communications Limited, which owns Paytm, said that it will withdraw its nominee from the Paytm Payments Bank Board and support the move for a board with only independent and executive directors.
The Paytm Payments Bank reconstituted its board of directors and appointed two former bureaucrats and two ex-bankers, the company said in a Bombay Stock Exchange filing on Monday.
Former Central Bank of India Chairman Srinivasan Sridhar, former Executive Director of Bank of Baroda Ashok Kumar Garg, retired Indian Administrative Service officers Debendranath Sarangi, Rajni Sekhri Sibal have joined the company as independent directors.
“Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices,” Surinder Chawla, managing director and the chief executive officer at Paytm Payments Bank said.
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