Paytm has been informed that Vijay Shekhar Sharma has resigned from the board of Paytm Payments Bank to enable the transition.
Shares of One 97 Communications Ltd (commonly known as Paytm) have garnered attention in Tuesday morning trading following significant developments within the company. The fintech giant announced the withdrawal of its nominee from the board of Paytm Payments Bank (PPBL) and the resignation of founder Vijay Shekhar Sharma from his role as part-time non-executive Chairman and board member of the associate company.
In a filing to the Bombay Stock Exchange (BSE), Paytm disclosed that PPBL’s future direction would be overseen by a restructured board, featuring prominent figures such as former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS officer Rajni Sekhri Sibal.
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Paytm expressed support for PPBL’s decision to transition to a board comprising solely independent and executive directors, affirming its commitment to the bank’s strategic direction. Furthermore, Paytm informed shareholders that Vijay Shekhar Sharma’s resignation from the PPBL board was intended to facilitate this transition, with PPBL initiating the process of appointing a new Chairman.
Meanwhile, recent regulatory actions have added another layer of complexity to Paytm’s operations. The Reserve Bank of India (RBI) instructed the National Payments Corporation of India (NPCI) to review Paytm’s application to become a third-party application provider (TPAP) and to enlist four to five banks as service providers. This directive follows the RBI’s restriction on PPBL from engaging in fresh deposits or credit transactions, affecting various customer accounts and digital payment instruments.
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Reports suggest that Paytm is poised to collaborate with prominent banking institutions, including HDFC Bank, YES Bank, State Bank of India (SBI), and Axis Bank, for processing transactions via the unified payments interface (UPI). Additionally, HDFC Bank and YES Bank have reportedly applied for TPAP status with the NPCI, aiming to facilitate mobile payments through the Unified Payments Interface (UPI).
These developments underscore the evolving landscape of India’s fintech industry and Paytm’s strategic maneuvers to navigate regulatory challenges while pursuing growth opportunities in digital payments.
