Vijay Shekhar Sharma Steps Down as Paytm Bank’s CEO
By: Geetanjali
After a restriction was put onto Paytm Payments Bank Ltd. (PPBL) transactions last month by the RBI (Reserve Bank of India) due to its non-compliance with the RBI’s banking norms and supervisory concerns within the bank.
Vijay Shekhar Sharma CEO, Founder and majority stakeholder (51%) of Paytm resigned from the post of non-executive chairman of the Paytm Bank on Monday, February 26, 2024, in a row after the resignation of Bhavesh Gupta, nominee Director of Paytm’s Parent company One97 Communications. Amid his resignation as the chairperson of the PPBL, Sharma will continue to head the Parent organisation One97 Communications.
As a result of the uncertainty in Paytm Bank’s business module RBI has banned PPBL from accepting deposits and credits after March 15,2024. Though people having accounts in the PPBL will be able to use their balance through any pre-paid mode until balance exhausts. Only deposits and credit is prohibited by the RBI. Though Paytm will still be working as a third party app providing UPI transactions.
As per the details by the Paytm Payments Bank’s administration, the Board of Directors has been reassembled.
The new Board consists of Srinivasan Sridhar retired Chairman of the Central Bank of India, former bureaucrats Debendranath Sarangi and Rajni Sekhari Sibal, and Ashok Kumar Garg retired executive director of BOB (Bank of Baroda), retired executive director of Punjab & Sind Bank Arvind Kumar Jain, and Paytm Payments Banks MD and CEO Surinder Chawla.
Paytm has also confirmed that after Sharma’s resignation a new name for the position of Paytm Payments Banks Chairman will be announced soon.
