Vijay Shekhar Sharma has resigned as the chairman of Paytm Payments Bank following the bank’s restructuring of its board.
On Monday, Paytm announced that Vijay Shekhar Sharma would be resigning from his roles as non-executive chairman and board member of its payments bank unit. This decision comes as the digital payments company undergoes a board overhaul in response to regulatory actions by the central bank.
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Regulatory action against Paytm Payments Bank was prompted by “serious supervisory concerns,” as per sources who informed Reuters. These concerns included insufficient customer identity verification measures and a perceived lack of independence from Paytm.
The Reserve Bank of India has directed the banking unit to cease its operations by March 15 due to ongoing non-compliance issues and significant supervisory concerns. This decision has led to a sharp decline in Paytm’s stock value.
Paytm revealed in a filing that Srinivasan Sridhar, ex-chairman of Central Bank of India, and Ashok Kumar Garg, former Executive Director of Bank of Baroda, alongside two retired Indian Administrative Service officers, are set to join its board.
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