Vijay Shekhar Sharma steps down as Paytm Bank’s chairman – Times of India

by The Technical Blogs


MUMBAI: Nearly a month after RBI‘s move to curb operations of Paytm Payments Bank, Vijay Shekhar Sharma, its founder and majority shareholder, has stepped down as the non-executive chairman of the bank’s board. Parent company One97 Communications‘s nominee director Bhavesh Gupta too has quit the bank’s board.
Sharma’s departure from the board marks the end of his seven-year banking stint as a fintech entrepreneur.He will continue to lead One97 Communications, which owns the Paytm brand and app. Going forward, the app will serve as a third-party application provider for UPI transactions.
As part of a rejig, the bank appointed former Central Bank of India chairman Srinivasan Sridhar and three other members – retired bureaucrats Debendranath Sarangi and Rajni Sekhri Sibal, and former Bank of Baroda executive director Ashok Kumar Garg.


Given that Paytm Payments Bank is no longer authorised to raise funds, the role of the new board will be to ensure the orderly winding down of the business. While customers cannot deposit funds after March 15, they can continue using their accounts, wallets, Fastags, and other prepaid instruments until their balances are depleted.
The rest of the board members include former Punjab & Sind Bank ED Arvind Kumar Jain, who serves as an independent director, and Paytm Payments Bank MD & CEO Surinder Chawla.
In a statement, One97 Communications, showed support for the decision to transition to a board consisting solely of independent and executive directors by withdrawing its nominee. The company also confirmed that Sharma has resigned from the board to facilitate this change. Paytm Payments Bank will appoint a new chairman.

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Sharma owns 51% in Paytm Payments Bank with One97 Communications holding the rest. Paytm shares were up 5% on Monday after Goldman Sachs said in a report that RBI’s clarification that @paytm UPI handles can be seamlessly migrated to other banks resolves a major unknown for Paytm
New board member Garg, with 39 years of banking experience, had earlier headed Bank of Baroda’s US operations in New York and was MD of the Bank of Baroda in Uganda. Sarangi serves as an independent director on the boards of Southern Petrochemical Industries and Voltas.


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