Beleaguered Paytm Payments Bank’s managing director and CEO Surinder Chawla has resigned from the corporate, a regulatory submitting stated on Tuesday.
Chawla’s resignation comes amidst Paytm Funds Financial institution dealing with prohibitory motion from banking regulator RBI.
“Surinder Chawla, Managing Director and CEO of PPBL, has tendered his resignation on April 8, 2024, on account of non-public causes and to discover higher profession prospects. He will probably be relieved from PPBL w.e.f. shut of enterprise hours on June 26, 2024, until modified by mutual consent,” One97 Communications, Paytm model proprietor, stated in a regulatory submitting.
Chawla joined PPBL in January final 12 months after the funds financial institution obtained approval from the Reserve Financial institution of India.
In a serious motion in opposition to Paytm Funds Financial institution (PPBL), RBI, on January 31, directed it to cease accepting deposits or top-ups in any buyer accounts, wallets, FASTags and different devices after February 29. Subsequently, the deadline was prolonged to March 15.
The route follows persistent non-compliance and continued materials supervisory issues, the central financial institution had stated in a press release.
On March 11, 2022, the RBI barred PPBL from onboarding new clients with fast impact.
Following regulatory actions, promoter Vijay Shekhar Sharma final month stepped down as part-time non-executive Chairman of Paytm Funds Financial institution Restricted, and the board of the financial institution has been reconstituted.
Former Central Financial institution of India chairman Srinivasan Sridhar, former Financial institution of Baroda Government Director Ashok Kumar Garg, and two retired Indian Administrative Service (IAS) officers had been inducted on the board of the financial institution.
One97 Communications Restricted (OCL) holds a 49 p.c stake in PPBL.
Paytm stated almost all agreements between the corporate and PPBL have been terminated as per a disclosure on March 1, 2024, and the board of PPBL has been reconstituted with 5 impartial administrators together with an impartial chairperson, and no nominees from the corporate, as per its disclosure on February 26, 2024.
“In keeping with our ongoing efforts, the corporate continues to collaborate with banking companions to reinforce our service provider buying and UPI companies,” the submitting stated.
The Nationwide Funds Company of India on Thursday granted One97 Communications Ltd the approval to take part in UPI as a Third-Get together Software Supplier (TPAP) below the multi-bank mannequin.
Axis Financial institution, HDFC Financial institution, State Financial institution of India, and YES Financial institution will act as Cost System Supplier (PSP) banks to Paytm.
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