In a significant organizational restructuring move, Chairman Vijay Shekhar Sharma has resigned from the Board of Paytm Payments Bank Ltd (PPBL), as announced by One97 Communications (OCL), the parent company of the Paytm brand, on February 26. The parent company is in search of a successor, and the appointment will be announced shortly.
The decision to facilitate the board’s reconstitution was cited as the reason behind Sharma’s resignation, with OCL informing the stock exchanges that PPBL would initiate the process of appointing a new chairman.
This action came in the wake of the Reserve Bank of India’s (RBI) imposition of stringent restrictions on Paytm Payments Bank ( Paytm PB ), disallowing deposit, credit transactions, or top-ups beyond February 29. The directive mandates Paytm PB to settle all pending pipeline transactions and nodal accounts by March 15, 2024, with a complete halt on subsequent transactions.
Further the date for disallowing deposit, credit transactions, or top-ups was extended to March 15th 2024.
Read More: RBI Extends Deadline to March 15th for Availing Credit Transactions and UPI Facility on PPBL
Recently, the RBI via press release has tasked the National Payments Corporation of India (NPCI) with evaluating the OCL’s request to become a third-party application provider and facilitating the involvement of four to five banks to serve as its service providers.
One97 Communications Ltd press release also announced several new appointments to the PPBL Board, including 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 as independent directors.
The statement highlighted OCL’s support for PPBL’s decision to transition to a board comprising solely independent and executive directors, thus eliminating its nominee from the board.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
