Curated By: Saurabh Verma
Last Updated: February 26, 2024, 20:42 IST
Paytm founder Vijay Shekhar Sharma (File photograph)
The financial institution has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda
Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal
Vijay Shekhar Sharma stepped down as chairman of Paytm Payments Bank because the embattled firm overhauls its board within the wake of a central financial institution clampdown.
The financial institution has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda
Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal. They have lately joined as Independent Directors, Paytm stated in an change submitting.
Sharma owns a 51% stake in Paytm Payments Bank, whereas One 97 Communications, as Paytm is formally identified, owns the remaining.
The motion towards Paytm Payments Bank adopted “serious supervisory concerns”, together with insufficient buyer determine and an absence of arms size distance with Paytm, sources had instructed Reuters.
The Reserve Bank of India has requested the banking unit to wind down its operations by March 15 as a result of persistent non-compliances and continued materials supervisory issues, triggering a meltdown in Paytm’s inventory.
Surinder Chawla, MD & CEO at Paytm Payments Bank stated, “We welcome the
appointment of Shri Srinivasan Sridhar, Shri Debendranath Sarangi, Shri Ashok Kumar Garg, and Smt Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL’s journey. Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices.”
In a bid to forestall any disruptions within the fee ecosystem, the Reserve Bank of India (RBI) on Friday requested the National Payments Corporation of India (NPCI) to look at the likelihood of migrating Paytm Payments Bank clients utilizing the UPI deal with ‘@paytm’ to 4-5 different banks. The central financial institution got here out with extra steps for the profit of clients, pockets holders and retailers who’re availing banking providers from Paytm Payments Bank, which has been barred from accepting deposits and credit after March 15, 2024.
(With inputs from Reuters, PTI)
