Paytm Payments Bank Chairman Vijay Shekhar Sharma resigns; board reconstituted

New Delhi: In a dramatic turn of events, Paytm Payments Bank chairman Vijay Shekhar Sharma has resigned from his position and also from the board. A new board has been constituted, the company said in a regulatory filing with the stock exchanges on Monday.

"One 97 Communications Ltd (OCL) would like to update that its associate, Paytm Payments Bank Limited (PPBL), has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Mr. Srinivasan Sridhar, retired IAS officer Mr. Debendranath Sarangi, former Executive Director of Bank of Baroda Mr. Ashok Kumar Garg, and Retd. IAS Mrs. Rajni Sekhri Sibal.

They have recently joined as Independent Directors. OCL 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.

Last month, the Central Bank RBI barred PPBL from accepting fresh deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29, a deadline which was extended till March 15, due to non-compliance of regulations and corporate governance-related issues.

“PPBL has informed us that they will commence the process of appointing a new Chairman. Mr. Sridhar brings with him an illustrious career in banking spanning over 40 years. He is currently serving as the Independent Director at Jubilant Pharmova.

The board also has former Executive Director of Punjab & Sind Bank Mr. Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO at Paytm Payments Bank. Surinder Chawla, MD & CEO at Paytm Payments Bank, said, "We welcome the appointment of Mr. Sridhar, Mr. Sarangi, Mr. Garg and Smt Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL's journey.” it said in the filing.

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.

Sridhar, Board Member, Paytm Payments Bank Board said, "I am dedicated to utilising my extensive banking expertise to steer the bank towards expanding its range of compliant services. It is my goal to ensure that PPBL becomes a paragon of regulatory compliance, setting new standards in delivering exceptional value to the stakeholders, in strict adherence with regulatory frameworks and best practices."

Sarangi also said that assuming this expanded role at a critical juncture for PPBL. “My dedication is firmly rooted in adhering to and exceeding the highest standards of regulatory compliance and corporate governance.

“I am wholly committed to applying my expertise to navigate PPBL towards a future characterized by operational excellence, ensuring strict compliance with regulatory guidelines and fostering a culture of best practices,” he said in the filing.