Vijay Shekhar Sharma, the founder of ‘Paytm’ has resigned as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) ahead of the March 15 deadline.
PPBL has also reestablished its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, One 97 Communications Limited stated in a regulatory filing on Monday.
“The company has been informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to authorize this transition.
PPBL has told us that they will start the appointing process for a new Chairman,” the filing said. Sharma owns a 51% stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.
‘The new board members’ expertise will be important in guiding us toward improving our governance structures and operational standards’, Paytm Payments Bank CEO Surinder Chawla said.
The decision comes after RBI’s crackdown on the payments bank over non-compliance and supervisory concerns.
The banking regulator had ordered the fintech firm to stop its banking activities after February 29 and later extended the deadline to March 15.
“The system audit report and compliance validation report of the external auditors revealed non-compliances and continued material supervisory concerns in the bank, warranting supervisory action,” the RBI said in a statement on its website.
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