Paytm’s Vijay Shekhar Sharma steps down from payments bank board

The Paytm Payments Bank has also reconstituted its board with the appointments of two former bureaucrats and two ex-bankers. “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,” the company said in a BSE filing.

One 97 communications, which owns Paytm, said it supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee. Sharma has resigned from the board of PPBL to enable this transition. The bank will commence the process of appointing a new chairman, Paytm said.

PPBL has reconstituted its board of directors with the appointment of ex-Central Bank of India Chairman Srinivasan Sridhar; retired IAS (Indian Administrative Service) officer Debendranath Sarangi; former Executive Director of Bank of Baroda Ashok Kumar Garg; and ex IAS Rajni Sekhri Sibal. They have joined as independent directors.

The RBI has barred PPBL from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after March 15, 2024, in the wake of persistent non-compliances and material supervisory concerns.

The action was taken due to non-compliance of various regulatory guidelines, including those related to know-your-customer (KYC) and not maintaining a Chinese wall with the group company, One97 Communications.