One 97 Communications (OCL) said on Monday that Vijay Shekhar Sharma has resigned as Paytm Payments Bank's part-time non-executive chairman and board member.
The changes come before of the Reserve Bank of India (RBI)'s March 15 deadline for PPBL to cease operations.
The Paytm Payments Bank also reorganized its board of directors by appointing two former bureaucrats and two former bankers. Vijay Shekhar Sharma resigns as a part-time non-executive chairman and board member, and OCL withdraws its nomination from the Paytm Payments Bank Board, the business announced in a BSE filing.
Shift in the Board
One 97 Communications, which owns Paytm, said it supports PPBL's decision to form a board with exclusively independent and executive directors by eliminating its nomination. Sharma has stepped down from the PPBL board to make this transfer possible. According to Paytm, the bank will start selecting a new chairman.
PPBL's board of directors has been restructured with the appointment of former Central Bank of India Chairman Srinivasan Sridhar, retired IAS (Indian Administrative Service) official Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and ex-IAS Rajni Sekhri Sibal. They have joined as independent directors.
Paytm is to be ceased by March 15
In response to chronic noncompliance and serious supervisory concerns, the RBI has prevented PPBL from receiving deposits or top-ups in any customer account, prepaid instrument, wallet, FASTags, or NCMC card after March 15, 2024.
The action was taken because the group firm, One97 Communications, failed to maintain a Chinese wall and violated several regulatory requirements, including those about know-your-customer (KYC).
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