Vijay Shekhar Sharma Resigns from Paytm Payments Bank

Paytm Vijay Shekhar Sharma has stepped down as Non-executive Chairman and Board member of Paytm Payments Bank Limited (PPBL) ahead of the March 15 deadline to halt payment operations.

Paytm, One 97 Communications Limited, announced the reinstatement of PPBL’s Board of Directors, including Ex-Central Bank of India Chairman Srinivasan Sridhar, senior IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal.

In response, the company stated, “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.”

Surinder Chawla, CEO of Paytm Payments Bank, highlighted the expertise of the new board members, emphasizing their role in enhancing governance structures and operational standards to ensure compliance and best practices.

Sharma retains a 51 percent stake in Paytm Payments Bank, with the remaining stake held by One 97 Communications, officially known as Paytm.

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This development follows regulatory action by the RBI against the bank for persistent non-compliance and regulatory concerns. The central bank directed the fintech firm to cease banking operations by February 29, later extending the deadline to March 15.

According to Reuters, Paytm Payments Bank, amid its challenges, remains a significant player alongside Axis Bank, HDFC Bank, State Bank of India, and Yes Bank in handling transactions via UPI.