Vijay Shekhar Sharma resigned from the post of non-executive chairman
Paytm on Monday said Vijay Shekhar Sharma will step down as non-executive chairman and board member of its payments bank unit, as the embattled digital payments company reshuffled its board following the central bank crackdown.
Sources told Reuters that the action against Paytm Payments Bank was taken following “serious supervisory concerns”, including inadequate customer identification and lack of interoperability with Paytm.
The Reserve Bank of India has asked the banking unit to shut down its operations by March 15 due to persistent non-compliance and continuing material supervisory concerns, sending Paytm’s stock into the red.
Former chairman of state-owned Central Bank of India Srinivasan Sridhar, former Bank of Baroda executive director Ashok Kumar Garg and two retired Indian Administrative Service officers will join the board, Paytm said in an exchange filing.
Surinder Chawla, CEO, Paytm Payments Bank, said the expertise of the new board members will be “crucial in guiding us in enhancing our governance framework and operational standards, further strengthening our dedication to compliance and best practices”.
Paytm has backed its banking arm’s move to elect a board consisting only of independent and executive directors by removing its nominee, it said Sharma is also stepping down from the board to “enable the transition”.
Mr Sharma holds 51 per cent stake in Paytm Payments Bank, while One97 Communications, as Paytm is formally known, owns the rest.
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