One97 Communications Ltd (OCL) filed a report on the BSE announcing Vijay Shekhar Sharma’s resignation as the part-time non-executive chairman and board member of Paytm Payments Bank Limited (PPBL).
A new board of directors has been constituted, the company announced, and the new members are retired IAS officer Debendranath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg, retired IAS chairman Srinivasan Sridhar, and retired IAS officer Rajni Sekhri Sibal. According to the company, they recently became independent directors on the board.
“OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee… PPBL has informed us that they will commence the process of appointing a new chairman,” it added.
Following weeks of non-compliance and regulatory concerns, the Reserve Bank of India (RBI) placed a series of business restrictions on Paytm Payments Bank. The business limitations are intended to affect the various business verticals of Paytm that are connected to the payments bank.
Subsequently, the central bank has taken some further measures, such as extending the restrictions temporarily, to protect the interests of the impacted customers. The previously established deadline for additional deposits, credit transactions, or top-ups in customer accounts, prepaid cards, wallets, FASTags, National Common Mobility Cards, etc. has been extended by the RBI from February 29, 2024 to March 15, 2024. Financial services like fund transfers, BBPOU, and UPI facilities have all been granted the same time extension.
According to recent clarification from RBI deputy governor Swaminathan J, the crackdown on Paytm’s payments bank was not abrupt; rather, it was the result of multiple discussions that gave the company enough time to implement corrective measures.
“When constructive engagement doesn’t work or when the regulated entity does not take effective action, we go for imposing business restrictions,” Das quoted.
