Vijay Shekhar Sharma has officially resigned from his position as the part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL), leading to a reconstitution of the bank's board, according to a recent filing. This development comes amid heightened regulatory scrutiny by the Reserve Bank of India (RBI) over persistent non-compliance issues and ongoing supervisory concerns.
Last month, in response to regulatory actions, the central bank imposed restrictions on PPBL, prohibiting the acceptance of fresh deposits or top-ups in various customer accounts, including wallets and FASTags, effective initially until February 29, with an extension later granted until March 15.
In a statement released on Monday, One 97 Communications, the parent company of PPBL, disclosed the appointment of new members to the bank's Board of Directors. Notably, the board welcomes Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal as Independent Directors.
Sridhar, with over 40 years of banking experience, currently serves as an Independent Director at Jubilant Pharmova and has held leadership positions at prestigious institutions like the Export Import Bank of India, Central Bank of India, and National Housing Bank.
Sarangi, a retired IAS officer of Tamil Nadu cadre, brings extensive experience in public administration and corporate governance, serving as an Independent Director on several corporate boards.
Meanwhile, Sibal, a retired IAS officer of Haryana cadre, has served as Secretary in the Government of India and holds positions as an Independent External Monitor in the public sector.
Garg, with almost four decades of diverse banking experience, has held significant roles including whole-time Director at Bank of Baroda and Managing Director of various subsidiaries.
In addition to these appointments, the board also includes former Executive Director of Punjab & Sind Bank, Shri Arvind Kumar Jain, as an Independent Director, and Surinder Chawla, MD and CEO of Paytm Payments Bank.
Surinder Chawla, CEO of PPBL, expressed optimism about the new appointments, emphasizing their expertise in governance and operational standards.
Sridhar expressed his commitment to ensuring regulatory compliance and enhancing the bank's services, while Sarangi pledged to navigate PPBL towards operational excellence and strict adherence to regulatory guidelines.
Meanwhile, the Reserve Bank had recently advised the National Payments Corporation of India (NPCI) to explore the possibility of transferring PPBL customers using the UPI handle '@paytm' to other banks, aiming to mitigate potential disruptions in the payment ecosystem.
As per PPBL's website, the bank boasts 30 crore wallets and serves 3 crore bank customers, indicating its substantial presence in the market.
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