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Vijay Shekhar Sharma Steps Down from Paytm Payments Bank Board

One 97 Communications Ltd (OCL), the parent company that owns and operates the Paytm brand, on Monday said its founder Vijay Shekhar Sharma will be stepping down as part-time non-executive chairman and board member at associate entity Paytm Payments Bank Ltd (PPBL) as part of a board restructuring.

OCL also said, in a BSE filing on Monday, that it has withdrawn all nominees from the payments bank’s board.

“OCL supports PPBL’s move of ting for a board with only independent and executive direction by removing its nominee. The Company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman,” according to the stock exchange filing.

Sharma, who was granted the licence to set up the payments bank in 2015, owned 51% in the entity, with the rest held by One 97.

ET reported on February 10 citing sources that Sharma considered resigning from the payments bank board last year and removing the name Paytm from its name to ‘quell mounting regulatory and compliance pressures on the fintech firm’.

The board restructuring follows the Reserve Bank of India’s recent action against PPBL barring the payments bank from accepting new deposits and providing banking services after March 15, Troubles at PPBL mounted as two independent directors former bankers Manju Agarwal and Shinjini Kumar recently resigned from its board.

To be sure, Kumar resigned from PPBL’s board in December, before the RBI order on January 31.

From One 97 Communications side, the payments bank board included group head of regulatory affairs Dr Srinivas Yanamandra, as well as chief operating officer and president Bhavesh Gupta.

The reconstituted board of PPBL includes former Central Bank of India chairman Srinivasan Sridhar, retired IAS officers Debendranath Sarangi and Rajni Sekhri Sibal, and former executive director of Bank of Baroda Ashok Kumar Garg.

“We welcome the appointment of Srinivasan Sridhar, Debendranath Sarangi, Ashok Kumar Garg, and Rajni Sekhri Sibal to our board, marking a significant step forward in PPBL’s journey. Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices,” said Surinder Chawla, managing director & chief executive at Paytm Payments Bank.

S-ET Image source: Google

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