The CEO and Managing Director of Paytm Payments Bank, Surinder Chawla, has decided to step down from his position, as announced by the company in a regulatory filing on Tuesday. Paytm's associate entity, Paytm Payments Bank Limited (PPBL), conveyed that Chawla tendered his resignation on April 8, 2024. The decision, attributed to personal reasons and a quest for better career prospects, will see Chawla being relieved from his duties at PPBL on June 26, barring any alterations by mutual agreement.
The restructuring within PPBL has been emphasized, with the board undergoing significant changes. As stated by One 97 Communications Limited, nearly all agreements between the parent company and PPBL have been terminated, a process initiated and disclosed on March 1, 2024. The reconstitution of PPBL's board now includes five independent directors, including an Independent Chairperson, without any nominees from the parent company.
Despite these transitions, Paytm remains committed to strengthening its services through collaborations with banking partners. Specifically, efforts are underway to enhance merchant acquiring and UPI services, ensuring continued progress and efficiency.
Regarding the succession plan for Chawla, Paytm Payments Bank is yet to unveil his replacement. Chawla, who joined the organization in February the previous year, has played a significant role in its journey.
This development follows the earlier resignation of Paytm's Founder and CEO, Vijay Shekhar Sharma, from his role as Non-Executive Chairman and Board Member of PPBL in February. The decision came in the wake of the Reserve Bank of India's ban on the bank's operations, signifying a period of transition and adaptation for the company.
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