Vijay Shekhar Sharma Resigns as Chairman of Paytm Payments Bank; Board Undergoes Restructuring

Ronit Kawale
Ronit Kawale  - Senior Editor
2 Min Read

In a significant shake-up, Vijay Shekhar Sharma, the founder of Paytm, has resigned from his position as the non-executive chairman and board member of Paytm Payments Bank Limited (PPBL). This move precedes the March 15 deadline set for winding down the bank’s operations.

The restructuring of PPBL’s Board of Directors accompanies Sharma’s resignation. The newly appointed members include Srinivasan Sridhar, former Chairman of the Central Bank of India, Debendranath Sarangi, retired IAS officer, Ashok Kumar Garg, former Executive Director of Bank of Baroda, and Rajni Sekhri Sibal, former IAS officer, as mentioned in a regulatory filing by One 97 Communications Limited, the formal entity behind Paytm.

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“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 stated.

Vijay Shekhar Sharma, the majority stakeholder with a 51% ownership in Paytm Payments Bank, and One 97 Communications, which is formally known as Paytm, holds the remaining shares.

The expertise of the new board members is expected to play a crucial role in steering the bank towards improving governance structures and operational standards. Paytm Payments Bank CEO Surinder Chawla expressed confidence in the new members, emphasizing their dedication to compliance and best practices.

The decision to restructure the leadership comes in response to the Reserve Bank of India’s (RBI) strict measures against the payments bank due to persistent non-compliance and supervisory concerns. The RBI had initially ordered Paytm to cease banking activities after February 29, later extending the deadline to March 15.

“The comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” stated the RBI in a statement on its website.

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