In a significant development, Vijay Shekhar Sharma, the founder and CEO of Paytm, has resigned from the board of Paytm Payments Bank.
The fintech startup announced that Sharma stepped down from his role as the part-time non-executive chairman and board member of the payments bank. This move comes as part of a reconstitution of the board amid regulatory scrutiny and non-compliance issues.
Reconstitution of the Board and New Appointments
Following Sharma’s resignation, a newly-reconstituted board will now oversee the operations of Paytm Payments Bank. The company also stated its intention to initiate the process of appointing a new chairman for the payments bank arm in the near future.
The newly-appointed board members include former Central Bank of India chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, Bank of Baroda’s ex-executive director Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal. These independent directors bring with them a wealth of experience and expertise, which will be instrumental in guiding the company towards enhancing governance structures and operational standards.
Confidence in the New Leadership
Surinder Chawla, managing director and CEO of Paytm Payments Bank, expressed confidence in the new board members, highlighting their distinguished expertise and their role in ensuring compliance and best practices within the organization.
Response to Regulatory Scrutiny
The reshuffling of the board comes in the wake of regulatory restrictions imposed on Paytm Payments Bank by the Reserve Bank of India (RBI) due to persistent non-compliance issues. Paytm’s move to revamp its board signals its commitment to addressing these concerns and strengthening its governance framework.