Vijay Shekhar Sharma Steps Down As Chairman Of Paytm Payments Bank

Mumbai, February 26: Vijay Shekhar Sharma has resigned as chairman of Paytm Payments Bank, according to regulatory filings by One 97 Communications Limited (OCL), the parent company of the bank. Paytm Payments Bank has constituted a new board after Vijay Shekhar Sharma stepped down. Former Central Bank of India Chairman Srinivasan Sridhar is among those who have joined the new board as Independent Directors.

"OCL withdraws its nominee from the Paytm Payments Bank Board and Vijay Shekhar Sharma steps down as Part-Time non-executive Chairman and Board member; PPBL's future business to be led by a reconstituted Board," the company announced through an exchange filing on Monday, February 26.

Sharma's resignation came days after the Reserve Bank of India instructed the termination of the nodal accounts of One 97 Communications Limited and Paytm Payment Services Ltd (PPSL), which were maintained by PPBL, citing "persistent non-compliances" and “continued material supervisory concerns”.

Vijay Shekhar Sharma Quits As Paytm Payments Bank Chairman:

Paytm, the pioneer of QR and mobile payments in India, has over 30 crore users, with around 11 crore monthly transacting users. It also has a network of around 1 crore merchants actively accepting payments.

RBI Action Against Paytm Payments Bank:

On January 31, the RBI barred Paytm Payments Bank from accepting any new deposits, credit transactions or top-ups in its wallets of accounts until February 29. The deadline has now been extended to March 15. After March 15, 2024, customers will not be able to deposit money into your account with Paytm Payments Bank.

No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited after March 15, according to the RBI. The company has reassured its users that its mobile app, including the QR code, Soundbox and Card Machine will remain operational even after March 15.