Vijay Shekhar Sharma steps down from Paytm bank’s board،
Following the ongoing case involving the Reserve Bank of India (RBI) and Paytm Payments Bank Limited (PPBL), Paytm co-founder Vijay Shekhar Sharma has resigned as non-executive chairman and member of the PPBL board of directors. The company confirmed the same in its filing with the RBI on Monday.
Paytm has confirmed the removal of Vijay Shekhar Sharma and will facilitate the process of appointing a new chairman. That being said, Ashok Kumar Garg (former executive director of the Bank of Baroda), Shrinivasan Sridhar (former chairman of the Central Bank of India) and two retired Indian administrative officers have been recruited to join the board members of Paytm administration.
The restructuring of the board of directors and the appointment of a new chairman will enable the company to facilitate its operational standards and governance structures and move forward in this transition phase and beyond.
RBI has asked PPBL to stop accepting any deposit and credit from March 15. The deadline has been revised from the old February 29 following various points including the majority of traders and customers who use PPBL on a daily basis.
The exchange filing also mentions that the company's banking unit will only appoint independent and executive directors.
After March 15, you will not be able to access any credit/deposit services at PPBL. FASTags, National Common Mobility Cards (NCMC), cashback and rewards will continue to be offered unless the balance is zero.
Paytm has also filed an application with RBI and NPCI to become a Third Party Application Processor (TPAP) enabling it to provide UPI payments by partnering with four to five banks as service providers. This will ensure that @paytm handles remain operational even after the stroke of midnight on March 15, requiring no further changes for customers.
Paytm is likely to partner with banks such as Axis Bank, SBI, Yes Bank and HDFC Bank, among others, which have the technological bandwidth to handle large volumes of UPI transactions without any hindrance. However, reports suggest that it will be another month before NPCI assesses the partner bank's infrastructure to handle such volumes, although this remains to be seen for certain.
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