Vijay Shekhar Sharma Resigns: Vijay Shekhar Sharma resigned as the chairman of Paytm Bank!

In a significant development, Paytm Payments Bank (PPBL) announced the stepping down of its chairman, Vijay Shekhar Sharma, and the reconstitution of its board. This news comes amidst ongoing regulatory scrutiny from the Reserve Bank of India (RBI) concerning compliance issues at PPBL.

On February 2024, One 97 Communications Ltd. (OCL), the parent company of Paytm, filed a regulatory document stating that Sharma had resigned from his position as the part-time non-executive chairman of PPBL. Additionally, he stepped down from the board entirely.

This move paves the way for PPBL to reconstitute its board with only independent and executive directors. The filing further stated that the bank will initiate the process of appointing a new chairman.

The news of Sharma's resignation and the board's restructuring comes after the RBI imposed restrictions on PPBL in January 2024. The central bank barred the bank from onboarding new customers and accepting deposits or credits beyond March 15, 2024. This strict action stemmed from persistent non-compliances and ongoing supervisory concerns identified by the RBI.

The reconstitution of the board with independent and experienced individuals is seen as a necessary step for PPBL to address the regulatory concerns and regain the trust of the RBI. The appointment of a new chairman with a strong compliance background is crucial for navigating this critical period and ensuring the bank's future growth.

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