Embattled Paytm Payments Bank managing director and chief executive Surinder Chawla has resigned from the company, a regulatory filing said on Tuesday.
Chawla’s resignation comes at a time when Paytm Payments Bank is facing prohibitory action from banking regulator the Reserve Bank of India (RBI).
“Surinder Chawla, Managing Director and Chief Executive Officer of PPBL, tendered his resignation on April 8, 2024, for personal reasons and to explore better career prospects. He will be relieved from PPBL at the end of working hours on June 26, 2024 , unless changes are made by mutual consent,” Paytm brand owner One97 Communications said in a regulatory filing.
Chawla joined PPBL in January last year after the payments bank received approval from the Reserve Bank of India.
The Reserve Bank of India (RBI) took major action against Paytm Payments Bank (PPBL) on January 31, directing it to stop accepting deposits or recharges from any customer accounts, wallets, FASTags and other instruments after February 29. The deadline was subsequently extended to March 15.
The direction follows ongoing non-compliance and ongoing significant regulatory concerns, the central bank said in a statement.
On March 11, 2022, the Reserve Bank of India immediately banned PPBL from accepting new customers.
Following regulatory action, promoter Vijay Shekhar Sharma resigned as part-time non-executive chairman of Paytm Payments Bank Limited last month and the bank’s board has also been restructured.
Srinivasan Sridhar, former chairman of the Central Bank of India, Ashok Kumar Garg, former executive director of Bank of Baroda and two retired Indian Administrative Service (IAS) ) officers are appointed to the bank’s board of directors.
One97 Communications Limited (OCL) holds 49% stake in PPBL.
Paytm said that as disclosed on March 1, 2024, almost all agreements between the company and PPBL have been terminated and the PPBL board of directors has been reconstituted to consist of five independent directors, including an independent chairman, and There were no nominees from this company. Disclosed on February 26, 2024.
“In line with our ongoing efforts, the company will continue to work with banking partners to enhance our merchant acquiring and UPI services,” the filing said.
The National Payments Corporation of India on Thursday approved One97 Communications Ltd to participate in UPI as a third-party application provider (TPAP) under the multi-bank model.
Axis Bank, HDFC Bank, State Bank of India and YES Bank will act as payment system provider (PSP) banks for Paytm.
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
