Vijay Shekhar Sharma Steps Down As Chairman Of Paytm Payments Bank Board

Paytm Payments Bank Row: Paytm Founder and CEO Vijay Shekhar Sharma has stepped down as part-time non-executive Chairman of the Board of beleaguered Paytm Payments Bank Limited (PPBL), Paytm said in a regulatory filing on Monday. According to the document, Sharma's exit came as part of a wider reshuffle of the PPBL Board of Directors.

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This comes amidst the Reserve Bank of India's clampdown on Paytm Payments Bank over "serious supervisory concerns", including inadequate customer identify and a lack of arms length distance with Paytm, Reuters said in a source-based report. The RBI has asked the banking unit to wind down its operations by March 15 due to persistent non-compliances and continued material supervisory concerns, triggering a meltdown in Paytm's stock. 

Srinivasan Sridhar, former chairman of state-owned Central Bank of India, former Bank of Baroda Executive Director Ashok Kumar Garg and two retired Indian Administrative Service officers will join the board, Paytm said in its exchange filing on Monday. The new board members' expertise will be "pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices", Paytm Payments Bank CEO Surinder Chawla said.

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Paytm supports its banking unit's move of opting for a board with only independent and executive directors by removing its nominee, it said, adding Sharma was also stepping down from the board to "enable the transition". Sharma owns a 51% stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.

(With inputs from Reuters)