New Delhi: Vijay Shekhar Sharma, the founder of Paytm, has stepped down as the part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) ahead of the March 15 deadline to cease its operations.
PPBL has announced a reshuffle of its Board of Directors, appointing Ex-Central Bank of India Chairman Srinivasan Sridhar, former Executive Director of Bank of Baroda Ashok Kumar Garg, retired IAS officer Debendranath Sarangi, and former IAS officer Rajni Sekhri Sibal, One 97 Communications Limited.
Sharma, who owns a 51% stake in Paytm Payments Bank, has resigned from the board to facilitate this transition, the filing noted. PPBL will now initiate the process of appointing a new Chairman.
This move comes amidst regulatory scrutiny from the RBI due to persistent non-compliance and supervisory concerns. The RBI had directed the fintech firm to halt its banking activities after February 29, later extending the deadline to March 15.
According to the RBI, the bank is prohibited from accepting further deposits, conducting credit transactions, or carrying out top-ups on any customer accounts or prepaid instruments. However, interest, cashback, or refunds can still be credited.
Also Read More –
- Paytm Founder Vijay Shekhar Sharma launches VSS Investments Fund, to invest ₹30 crore in AI, EV startups
- Paytm Group CFO Expresses Confidence in Sustainable Free Cash Flow, Foresees No Future Funding Requirement
Discussion about this post