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Paytm Founder Vijay Shekhar Sharma Resigns as Paytm Payments Bank Chairman


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Paytm founder Vijay Shekhar Sharma has resigned as the Chairman of Paytm Payments Bank Limited ahead of the March 15 deadline set by the Reserve Bank of India (RBI). This decision comes after the RBI barred Paytm Payments Bank from receiving deposits and credits from customers after March 15 due to persistent non-compliance and supervisory concerns.

Reconstitution of the Paytm Payments Bank Board

In addition to Vijay Shekhar Sharma’s resignation, Paytm Payments Bank Limited (PPBL) has reconstituted its board. Former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal have joined the board as Independent Directors.

Background on RBI’s Actions

The RBI had imposed significant business restrictions on Paytm Payments Bank, including a prohibition on accepting fresh deposits and conducting credit transactions after February 29. This deadline was later extended to March 15. The RBI’s actions were taken due to persistent compliance issues and supervisory concerns.

Impact on Customers and Operations

Customers and merchants of Paytm Payments Bank have been asked to shift their accounts to other banks by March 15 Salaries, pensions, EMIs, and OTT subscriptions will not be credited to PPBL accounts after this date Paytm is working with other banks to change the virtual payment address linked to PPBL that merchants use for accepting transactions to ensure there is no disruption in their operations.

Conclusion

Vijay Shekhar Sharma’s resignation as Chairman of Paytm Payments Bank and the reconstitution of the bank’s board are part of the ongoing regulatory challenges faced by Paytm. The RBI’s actions aim to address compliance issues and supervisory concerns. Customers and merchants are advised to make alternative arrangements and shift their accounts to other banks by March 15

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