Paytm Bank Chairman Vijay Shekhar Resigns: New Board to Be Formed, Process to Appoint New Chairman to Begin Shortly
Vijay Shekhar Sharma, the founder of Paytm, has resigned from the board of Paytm Payments Bank (PPBL) on Monday (February 26). He was serving as the part-time non-executive chairman of the bank. After his resignation, a new board is being constituted for the bank. The process of appointing a new chairman for the Paytm Payments Bank will begin shortly. Following his resignation, former chairman of the Central Bank of India, Shrinivasan Sharad, will be a member of the board. Additionally, retired IAS officer Devendra Nath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg, and retired IAS officer Rajani Sekhri Sibal will also join the board of Paytm Payments Bank.
Vijay Shekhar Sharma, the founder of Paytm, resigned from the board of Paytm Payments Bank (PPBL) earlier, before two independent directors resigned from the board of Paytm Payments Bank. Bank of America and Price Waterhouse Coopers (PWC) former executive Shinjini Kumar had resigned in December. At the same time, former Deputy Managing Director of SBI, Manju Agarwal, also resigned from the board.
PPBL will be partnering with four banks.
According to media reports, due to the RBI’s scrutiny of regulatory violations, Paytm Payments Bank, which is facing regulatory action, is in talks to partner with four major banks of the country – Axis Bank, HDFC Bank, State Bank of India, and Yes Bank – to continue its UPI services.
The RBI has extended the deadline for Paytm Bank until March 15th.
The Reserve Bank of India (RBI) has extended the deadline for deposits and other transactions at Paytm Payments Bank until March 15th. A circular was issued by the RBI on Friday, February 16th, regarding this matter. In the past few days, the central bank has received several inquiries from the public. Based on these inquiries, the RBI also released FAQs (Frequently Asked Questions) regarding the matter.
Earlier, in a circular issued on January 31st, the RBI had stated that after February 29th, funds cannot be deposited into Paytm Payments Bank accounts. The bank cannot accept money in its wallet, prepaid services, Fastag, and other services.
The RBI has imposed a ban on Paytm Payments Bank.
Paytm’s parent company is One97 Communications Limited.
It has a cooperative bank called Paytm Payments Bank Limited.
Services are available on the Paytm app through Paytm Payments Bank.
One97 Communications holds a 49% stake in Paytm Payments Bank.
The ban imposed by the RBI applies to Paytm Payments Bank due to its many services being provided by the bank itself. In this situation, services offered by Paytm Payments Bank will be discontinued after March 15, 2024, while other services will continue as before.
Paytm provides its UPI service exclusively through Paytm Payments Bank. Therefore, if there is no partnership with other banks, the UPI service will also be discontinued after March 15. Paytm has stated that it is in discussions with both NPCI and RBI regarding this matter.
