Paytm Payments Bank CEO Surinder Chawla Resigns

Beleaguered Paytm Payments Bank’s managing director and CEO Surinder Chawla has resigned from the corporate, a regulatory submitting mentioned on Tuesday.

Chawla’s resignation comes amidst Paytm Payments Bank dealing with prohibitory motion from banking regulator RBI.

“Surinder Chawla, Managing Director and CEO of PPBL, has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent,” One97 Communications, Paytm model proprietor, mentioned in a regulatory submitting.

Chawla joined PPBL in January final 12 months after the funds financial institution obtained approval from the Reserve Bank of India.

In a serious motion in opposition to Paytm Payments Bank (PPBL), RBI, on January 31, directed it to cease accepting deposits or top-ups in any buyer accounts, wallets, FASTags and different devices after February 29. Subsequently, the deadline was prolonged to March 15.

The path follows persistent non-compliance and continued materials supervisory issues, the central financial institution had mentioned in an announcement.

On March 11, 2022, the RBI barred PPBL from onboarding new prospects with fast impact.

Following regulatory actions, promoter Vijay Shekhar Sharma final month stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited, and the board of the financial institution has been reconstituted.

Former Central Bank of India chairman Srinivasan Sridhar, former Bank of Baroda Executive Director Ashok Kumar Garg, and two retired Indian Administrative Service (IAS) officers have been inducted on the board of the financial institution.

One97 Communications Limited (OCL) holds a 49 % stake in PPBL.

Paytm mentioned practically all agreements between the corporate and PPBL have been terminated as per a disclosure on March 1, 2024, and the board of PPBL has been reconstituted with 5 impartial administrators together with an impartial chairperson, and no nominees from the corporate, as per its disclosure on February 26, 2024.

“In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services,” the submitting mentioned.

The National Payments Corporation of India on Thursday granted One97 Communications Ltd the approval to take part in UPI as a Third-Party Application Provider (TPAP) underneath the multi-bank mannequin.

Axis Bank, HDFC Bank, State Bank of India, and YES Bank will act as Payment System Provider (PSP) banks to Paytm.