Paytm Payments Bank Chairman Vijay Shekhar Sharma quits ahead of Mar 15 deadline

Mangalore Today News Network

New Delhi, Feb 26, 2024: Paytm founder Vijay Shekhar Sharma on Monday resigned as Paytm Payments Bank Chairman ahead of March 15 deadline set by the Reserve Bank of India (RBI) to accept further credits into its customer accounts. Additionally, One 97 Communications Ltd (OCL), the parent firm of Paytm, also announced that Paytm Payments Bank Limited (PPBL) has reconstituted its board.

 

Vijay Shekhar Sharma was the part-time non-executive Chairman of Paytm Payments Bank Limited.

The announcement comes weeks after RBI barred Paytm Payments Bank from receiving deposits and credits from customers after March 15 for persistent non-compliance and continued material supervisory concerns in the bank.

"Vijay Shekhar Sharma has 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," OCL said in a statement.

Meanwhile, former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal have joined the Paytm Payments Bank board as Independent Directors.

Earlier this month, the Reserve Bank asked customers as well as merchants of Paytm Payments Bank to shift their accounts to other banks by March 15. The earlier deadline was February 29, 2024, which the RBI has extended by 15 days, keeping in view the interest of customers.

Salaries and pensions too will not be credited in PPBL accounts after March 15. Those customers paying EMIs or OTT subscriptions through PPBL also need to make alternative arrangements.

On February 16, One97 Communications shifted its nodal account to Axis Bank from Paytm Payments Bank to allow continuity of Paytm QR, Soundbox, card machine after the March 15 set by RBI. The nodal account of Paytm is like a master account in which all its customers and merchant transactions are settled.

Currently, Paytm is also working with other banks to change the virtual payment address linked to PPBL that merchants use for accepting transactions, so that there is no disruption in their transactions after the RBI set a deadline.

Courtesy: India Today