Leading financial services company Paytm said on Monday that its founder and CEO Vijay Shekhar Sharma has stepped down as Non-Executive Chairman and Board Member of Paytm Payments Bank Ltd (PPBL), as the Reserve Bank of India (RBI) ban on the bank's operations inches closer.
In a BSE filing, the company said that the PPBL has reconstituted the Board with the appointment of Central Bank of India's former Chairman Srinivasan Sridhar, retired IAS officers Debendranath Sarangi and Rajni Sekhri Sibal, and Bank of Baroda's former Executive Director Ashok Kumar Garg.
PPBL's future business will be led by a reconstituted Board by One 97 Communications Ltd (OCL), after the RBI ban on the bank operations from March 15. They recently joined as Independent Directors.
"OCL withdraws its nominee from the Paytm Payments Bank Board and Vijay Shekhar Sharma steps down as part-time, non-executive Chairman and Board member," it said in the filing.
The company said that it supports PPBL’s move of opting for a board with only Independent and Executive Directors 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,” said the company in its filing.
This significant development came as the central bank extended, by 15 days to March 15, the deadline after which Paytm Payments Bank Ltd is barred from accepting deposits.
The last date fixed earlier was February 29.
The company has reassured its users that its mobile app, including the QR code, Soundbox and Card Machine will remain operational even after March 15.
"We welcome the appointment of Sridhar, Sarangi, Garg, and Sibal to our Board, marking a significant step forward in PPBL's journey,” said Surinder Chawla, MD and CEO at Paytm Payments Bank.