Paytm CEO Vijay Sharma says Paytm Payments Bank board is independent

The chief executive of digital payments firm Paytm, formally known as One97 Communications Ltd (OCL), on Monday said the board of India’s Paytm Payments Bank is independent and capable of addressing regulatory concerns.

“Personally, I or anyone at OCL has no connection with the payments bank,” Vijay Shekhar Sharma said in a webinar.

“There is an independent board that looks after everything and we have full confidence in their ability.”

The Reserve Bank of India (RBI) in late January had ordered Paytm Payments Bank to stop accepting new deposits in its accounts or digital wallets from March, citing supervisory concerns and persistent non-compliance with regulations.

Paytm Payments Bank’s parent company is One97 Communications, which is popularly known as Paytm for its digital payments app.

One97 holds 49 per cent stake in the payments bank, while Sharma holds the remaining 51 per cent.

In February, following the RBI order, Sharma stepped down as non-executive chairman and board member of Paytm Payments Bank.

Last month, Paytm was granted a third-party application provider license by the country’s payments authority, which will enable it to facilitate payments after its banking unit ceases operations.

The license allows customers to continue using the Paytm app for payments through India’s popular Unified Payments Interface (UPI) after Paytm Payments Bank ceased operations till March 15 following regulatory action for non-compliance of certain norms. Will give.

National Payments Corporation of India (NPCI) said in a statement at the time that Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system provider banks for Paytm.

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