One97 Communications, Surinder Chawla, Managing Director and CEO of Paytm Payments Bank, has submitted his resignation on Tuesday, April 9.
His departure is scheduled for June 16, 2024, when he will be relieved of his duties.
One97 Communications said, “Surinder Chawla, Managing Director and CEO of PPBL has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects.”
“He will be relieved from PPBL w.e.f close of business hours on June 26, 2024, unless changed by mutual consent,” the company added.
Earlier in February, Paytm founder Vijay Shekhar Sharma stepped down from his position as non-executive Chairman.
He also resigned as a board member of Paytm Payments Bank Limited (PPBL) ahead of the March 15 deadline to wind down its business.
The company in the filing said, “OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee.”
“The Company also said 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,” the company added in the filing.
The restructuring follows as on January 31, 2024, Reserve Bank of India (RBI) issued notice to Paytm Payments Bank and restricted accepting fresh deposits and doing credit transactions after February 29.
Post this, no fund transfers will be allowed either, which means that unless Paytm finds a new banking partner or partners, it will not be able to offer most services on its app.
The decision comes after the central bank in March 2022 barred Paytm Payments Bank from onboarding new customers.
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