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regular-article-logo Monday, 17 June 2024

Paytm Payments Bank MD and CEO Surinder Chawla resigns, cites personal reasons

A One97 Communications associate, PPBL was at the receiving end of a major crackdown by the Reserve Bank for non-compliance

Our Special Correspondent Mumbai Published 10.04.24, 11:55 AM
Surinder Chawla

Surinder Chawla Sourced by The Telegraph

Beleaguered Paytm Payments Bank Ltd was rocked by a high-level exit on Tuesday. Surinder Chawla, the managing director & CEO of the bank, has resigned citing personal reasons.

“Surinder Chawla has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL with effect from close of business hours on June 26, 2024, unless changed by mutual consent,” One97 Communications, the Paytm parent, said in a regulatory filing.

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A One97 Communications associate, PPBL was at the receiving end of a major crackdown by the Reserve Bank for non-compliance.

The central bank barred the bank from accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. Subsequently, the deadline was extended to March 15.

The banking regulator’s directive followed persistent non-compliance and continued material supervisory concerns. Earlier, on March 11, 2022, the RBI had barred PPBL from onboarding new customers with immediate effect.

After the regulatory action, promoter Vijay Shekhar Sharma stepped down as part-time non-executive chairman of PPBL and the board of the bank was reconstituted.

Former Central Bank of India chairman Srinivasan Sridhar, former Bank of Baroda executive director Ashok Kumar Garg and two retired IAS officers were inducted on the board.

In a regulatory disclosure, Paytm reiterated that nearly all agreements between the company and PPBL have been terminated and the board reconstituted with five independent directors including an independent chairperson and no nominees from the company.

“In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services,” Paytm said.

Meanwhile, The National Payments Corporation of India on Thursday granted One97 Communications Ltd permission to participate in UPI as a third-party application provider (TPAP) under the multi-bank model.

Axis Bank, HDFC Bank, SBI, and Yes Bank will act as payment system provider (PSP) banks to Paytm.

Byju salaries

Edtech firm Think and Learn, owner of Byju’s brand, has started paying March salaries after a delay of nine days and the payout process is expected to be completed in the next 10 days, according to sources.

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