Paytm, the prominent Indian financial technology company, has officially confirmed the resignation of an independent director from its banking arm. Manju Agarwal, a member of the board at Paytm Payments Bank, tendered her resignation on February 1, citing personal commitments as the primary reason for her departure, the company announced through an exchange filing on Monday.
This development comes at a crucial juncture for the company, as it grapples with regulatory issues following the Reserve Bank of India's directive for Paytm Payments Bank to wind down a significant portion of its operations.
In the regulatory filling, the company said, "Our associate entity, Paytm Payments Bank Limited (PPBL), has informed us that Ms. Manju Agarwal, Independent Director resigned from the Board of PPBL on February 01, 2024, due to her personal commitments which was noted by PPBL Board on February 06, 2024."
"We hereby submit that PPBL is our associate entity and this event is not deemed material for the Company and does not impact the operations / business of the Company, as per the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations)", the regulatory filings added.
Recently, the Reserve Bank of India imposed restrictions on Paytm Payments Bank, prohibiting the offering of additional banking services effective March 2024. The regulatory action was initiated due to concerns regarding violations of norms. After February 29, Paytm Payments Bank is barred from accepting deposits, engaging in credit transactions, and offering top-ups for various services, including customer accounts, prepaid instruments, wallets, FASTags, and NCMC (National Common Mobility Cards).