Amitha Reji George, Pune
Paytm founder Vijay Shekhar Sharma resigned as Paytm Payments Bank Chairman ahead of the March 15 deadline set by the Reserve Bank of India (RBI) to accept further credits into its customer accounts. Also, Paytm’s parent, one 97 Communication Ltd(OCD), declared that the board of Paytm Payments Bank Limited(PBL) had been reorganized. At Paytm Payments Bank Limited, Vijay Shekhar Sharma served as the non-executive chairman on a temporary basis.
The announcement was made weeks after the RBI prohibited Paytm Payments Bank from accepting consumer deposits or credits after March 15 due to the bank’s ongoing substantial supervisory concerns and ongoing non-compliance.One 97 Communications Limited stated in a regulatory filing on Monday that PPBL has also reconstituted its Board of Directors with the appointment of Former Central Bank of India Chairman Srinivasan Sridhar, former Bank of Baroda Executive Director Ashok Kumar Garg, retired IAS officer Debendranath Sarangi, and former IAS officer Rajni Sekhri Sibal. Vijay Shekhar Sharma has also resigned from the Paytm Payments Bank Board in order to facilitate this transition, the firm has been told separately. We have been advised by PPBL that they will begin the process of selecting a new Chairman, the filing stated.
Of Paytm Payments Bank, Sharma owns 51 percent, and the remaining percent is owned by One 97 Communications, the company that runs Paytm. According to the RBI, the bank will not be permitted to accept any more deposits, carry out credit transactions, or top up any client accounts, prepaid cards, wallets, or cards used to pay for tolls on public roads. Refunds, cashbacks, and interest, however, are all subject to credit at any time.
According to Reuters, the financially ailing company is expected to collaborate with Axis Bank, HDFC Bank, State Bank of India, and Yes Bank to process transactions through the widely used unified payments interface (UPI).
The Reserve Bank of India asked earlier this month that Paytm Payments Bank merchants and customers move their accounts to other banks by March 15. The RBI has extended the deadline, which was originally set for February 29, 2024, by 15 days to take into account customer interest.