An Indian multinational financial technology company, Paytm founder Vijay Shekhar Sharma has 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.
Paytm Payments Bank CEO Surinder Chawla emphasized the importance of the new board members, stating, “The expertise of the new board members will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices.”
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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