Vijay Shekhar Sharma on Monday resigned as the part-time non-executive chairman and board member of Paytm Payments Bank (PPBL), One 97 Communications Ltd (OCL), the parent company of Paytm, said in a regulatory filing.
PPBL has also reconstituted its board 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 Retd. IAS Rajni Sekhri Sibal. The new board members, the company said, have recently joined as Independent Directors.
In the exchange filing, OCL said that it supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee. “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,” it said.
Beyond these, the board also constitutes former Executive Director of Punjab & Sind Bank Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO at Paytm Payments Bank.
Surinder Chawla, MD & CEO at Paytm Payments Bank, said, “We welcome the appointment of Shri Srinivasan Sridhar, Shri Debendranath Sarangi, Shri Ashok Kumar Garg, and Smt Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL’s journey. Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices.”
Srinivasan Sridhar, Board Member, Paytm Payments Bank Board, said, “I am dedicated to utilizing my extensive banking expertise to steer the bank towards expanding its range of compliant services. It is my goal to ensure that PPBL becomes a paragon of regulatory compliance, setting new standards in delivering exceptional value to the stakeholders, in strict adherence with regulatory frameworks and best practices.”
Debendranath Sarangi, Board Member, Paytm Payments Bank, said, “Assuming this expanded role at a critical juncture for PPBL, my dedication is firmly rooted in adhering to and exceeding the highest standards of regulatory compliance and corporate governance. I am wholly committed to applying my expertise to navigate PPBL towards a future characterized by operational excellence, ensuring strict compliance with regulatory guidelines and fostering a culture of best practices.”
The development has come after the Reserve Bank of India (RBI) asked National Payments Corporation of India (NPCI) to examine the request of Paytm’s parent company One97 Communication to become the Third Party Application Provider for the UPI operations of Paytm app.
Last month, the RBI took regulatory action against Paytm Payments Bank on January 31, barring it from offering banking services effective March. The RBI’s action on Paytm Payments Bank is the culmination of a four-year scuffle between the two on issues such as segregation in IT, risk and other operations between the two entities, and persistent violation of KYC and customer on-boarding norms.