Paytm Payments Bank Chairman Vijay Shekhar Sharma quits

Paytm creator Vijay Shekhar Sharma on Monday resigned as Paytm Payments Bank Chairman ahead of March 15 due date set by the Reserve Bank of India (RBI) to accept additional credits into its client accounts. Furthermore, One 97 Communications Ltd (OCL), the moms and dad company of Paytm, likewise revealed that Paytm Payments Bank Limited (PPBL) has actually reconstituted its board.

Vijay Shekhar Sharma was the part-time non-executive Chairman of Paytm Payments Bank Limited.

The statement comes weeks after RBI disallowed Paytm Payments Bank from getting deposits and credits from consumers after March 15 for relentless non-compliance and continued product supervisory issues in the bank.

“Vijay Shekhar Sharma has actually resigned from the Board of Paytm Payments Bank to allow this shift. PPBL has actually notified us that they will start the procedure of designating a brand-new Chairman,” OCL stated in a declaration.

Previous Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, previous Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal have actually signed up with the Paytm Payments Bank board as Independent Directors.

Previously this month, the Reserve Bank asked consumers along with merchants of Paytm Payments Bank to move their accounts to other banks by March 15. The earlier due date was February 29, 2024, which the RBI has actually extended by 15 days, keeping in view the interest of clients.

Incomes and pensions too will not be credited in PPBL accounts after March 15. Those consumers paying EMIs or OTT memberships through PPBL likewise require to make alternative plans.

On February 16, One97 Communications moved its nodal account to Axis Bank from Paytm Payments Bank to permit connection of Paytm QR, Soundbox, card maker after the March 15 set by RBI. The nodal account of Paytm resembles a master account in which all its clients and merchant deals are settled.

Presently, Paytm is likewise dealing with other banks to alter the virtual payment address connected to PPBL that merchants utilize for accepting deals, so that there is no interruption in their deals after the RBI set a due date.