Paytm founder Vijay Shekhar Sharma has stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) ahead of the March 15 deadline to wind down its business.
PPBL has also reconstituted its Board of Directors with the appointment 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 former IAS officer Rajni Sekhri Sibal, One 97 Communications Limited said in a regulatory filing on Monday.
"The company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman," the filing said.
One 97 Communications Ltd (OCL) is the owner of the Paytm brand.
The decision comes amid RBI's crackdown on the payments bank over persistent non-compliance and supervisory concerns.
The fintech company was given a deadline by the banking authorities to cease its banking operations by February 29. Afterwards, the deadline was extended until March 15.
According to the RBI, the bank will not be permitted to accept any more deposits, carry out credit transactions, or top up any client accounts, prepaid cards, wallets, or cards used to pay for tolls on public roads. Refunds, cashbacks, and interest, however, are all subject to credit at any time.
According to Reuters, the financially ailing company is expected to collaborate with Axis Bank, HDFC Bank, State Bank of India, and Yes Bank to process transactions through the widely used unified payments interface (UPI).