Paytm Payments Bank's Managing Director and CEO Surinder Chawla has tendered his resignation on April 8, according to a stock exchange filing. Chawla is stepping down citing personal reasons and to explore better career prospects. He will be relieved from PPBL on June 26, the release stated.
One 97 Communications stated again in the release to the stock exchanges that 'nearly all agreements between the company and PPBL have been terminated', and the board of Paytm Payments Bank has been reconstituted with five independent directors, including an Independent Chairperson, and no nominees from the company.
One 97 Communications said it continues to collaborate with banking partners to enhance merchant acquiring and UPI services.
Prior to this, on February 26, Vijay Shekhar Sharma has resigned from the Board of embattled Paytm Payments Bank Ltd (PPBL).
Vijay Shekhar Sharma resigned from the Board of Paytm Payments Bank to enable the reconstitution of the board, OCL informed the bourses and added, "PPBL has informed us that they will commence the process of appointing a new chairman".
On January 31, the RBI imposed major business restrictions on PPBL, including a bar on accepting fresh deposits and doing credit transactions after February 29. On February 16, it extended the deadline to March 15.
On March 14, The National Payments Corporation of India (NPCI) has granted approval to One97 Communications Limited (OCL), Paytm's parent entity, to participate in UPI services as a Third-Party Application Provider (TPAP) under multi-bank model.
The much-awaited license would allow Paytm to continue offering Unified Payments Interface (UPI) services to its app users, after its banking unit Paytm Payment bank Limited (PPBL) ceases operations post March 15 following regulatory action.
Under the new model, Paytm will now provide the payment service in partnership with four new banks--Axis Bank, HDFC Bank, State Bank of India, Yes Bank--who will act as its Payment System Provider (PSP).
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
