DIGITAL NEWS GURU BUSINESS DESK :-
Vijay Shekhar Sharma resigned as non-executive chairman of paytm:
Paytm founder Vijay Shekhar Sharma resigned as non-executive chairman and board member of its payments bank’s unit the on Monday, as it faces regulatory hurdles.
Paytm said on Monday that Vijay Shekhar Sharma would step down as non-executive chairman and board member of its payments bank’s unit, as the embattled digital payments company overhauls its board after a central bank clampdown.
The reconstituted Board of PPBL comprised of Ex-Central Bank of India Chairman Srinivasan Sridhar, Retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal.
They have recently joined as Independent Directors.Commenting on the Board reconstitution, Surinder Chawla, MD & CEO at Paytm Payments Bank said, “We welcome the appointment of Srinivasan Sridhar, Debendranath Sarangi, Ashok Kumar Garg, and Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL’s journey.
Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices.”
BOARD MEMBER’s on Vijay Shekhar Sharma’s resigned:
Srinivasan Sridhar, Board Member, Paytm Payments Bank Board, said, “I am dedicated to utilising my extensive banking expertise to steer the bank towards expanding its range of compliant services. It is my goal to ensure that PPBL becomes a paragon of regulatory compliance, setting new standards in delivering exceptional value to the stakeholders, in strict adherence with regulatory frameworks and best practices.”
Debendranath Sarangi, Board Member, Paytm Payments Bank, said, “Assuming this expanded role at a critical juncture for PPBL, my dedication is firmly rooted in adhering to and exceeding the highest standards of regulatory compliance and corporate governance. I am wholly committed to applying my expertise to navigate PPBL towards a future characterised by operational excellence, ensuring strict compliance with regulatory guidelines and fostering a culture of best practices.”
Earlier this month, the Reserve Bank asked customers as well as merchants of Paytm Payments Bank to shift their accounts to other banks by March 15. The earlier deadline was February 29, 2024, which the RBI has extended by 15 days, keeping in view the interest of customers.Salaries and pensions too will not be credited in PPBL accounts after March 15. Those customers paying EMIs or OTT subscriptions through PPBL also need to make alternative arrangements.
The RBI said the bank will not be allowed to take any further deposits or conduct credit transactions or carry out top ups on any customer accounts, prepaid instruments, wallets, cards for paying road tolls. However, interest, cashbacks, or refunds can be credited anytime.
The troubled firm is likely to partner with Axis Bank, HDFC Bank, State Bank of India and Yes Bank for processing transactions via the popular unified payments interface (UPI), according to Reuters.
Who is Vijay Shekhar Sharma?:
Mr. Vijay Shekhar Sharma is the founder and CEO of One97 Communications and its consumer brand Paytm. He has transformed Paytm into India’s leading mobile-first financial services conglomerate in a relatively short timeframe.He was born in 1978 in Aligarh, Uttar Pradesh, Vijay Shekhar Sharma completed his B.Tech from Delhi College of Engineering, now known as Delhi Technological University, in 1998.
-Sharma established the mobile wallet Paytm in 2011. An abbreviation for “pay through mobile,” Paytm witnessed exponential growth following India’s 2016 demonetisation as it boasted 400 million users and processed 25 million transactions daily, according to a Forbes report.
-Recognised for his environmental advocacy, Vijay Shekhar Sharma was appointed United Nations Environment’s Patron for Clean Air in 2017. He actively supported the UN Environment’s #BreatheLife campaign, advocating for environmental action and awareness.
Why paytm is running in loss?
Paytm Payments Bank faces an existential crisis due to RBI’s ban. Paytm has been under ED investigation since 2021 for alleged money laundering and illegal betting.5 Feb 2024.It has directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. The regulator reportedly found major irregularities in KYC, which exposed the customers, depositors and wallet holders to serious risks.
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