Paytm confirms resignation of Payments Bank director Manju Agarwal

On January 31, the Reserve Bank of India (RBI) imposed major business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions after February 29.

Paytm on February 12 confirmed media reports of Manju Agarwal's resignation, an independent director of Paytm Payments Bank Limited (PPBL).

In a regulatory filing, Paytm said, “We hereby submit that our associate entity, Paytm Payments Bank Limited (PPBL), has informed us that Manju Agarwal, Independent Director resigned from the Board of PPBL on February 01, 2024, due to her personal commitments which was noted by PPBL Board on February 06, 2024.”

Manju Agarwal is a former Deputy Managing Director at the State Bank of India (SBI), and had been serving on the PPBL board since May 2021.

"We hereby submit that PPBL is our associate entity and this event is not deemed material for the company and does not impact the operations/ business of the company, as per the provisions of Regulation 30 of the SEBI," the company added.

On January 31, the Reserve Bank of India (RBI) imposed major business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions after February 29.

The regulator found major irregularities in KYC, which exposed the customers, depositors, and wallet holders to serious risks. In its probe, the RBI found that in thousands of cases, the same PAN was linked to more than 100 customers and in some cases to more than 1,000 customers. The total value of transactions, running into crores of rupees, much beyond regulatory limits in minimum KYC pre-paid instruments, raising money-laundering concerns.

On February 9, the payments firm said it has formed an advisory committee, headed by former Securities and Exchange Board of India (SEBI) chairman M Damodaran, to advise PPBL on compliance and regulation.

The three-member committee includes former president of the Institute of Chartered Accountants of India (ICAI) MM Chitale and former chairman and MD of Andhra Bank R Ramachandran.