27-Feb-2024
2 mins read
India’s famous fintech company, Paytm founder Vijay Shekhar Sharma, has stepped down from the board member, non-executive chairman of Paytm Payments Bank Limited. The company faces regulator hurdles from the Reserve Bank of India, so this step from Vijay Shekhar Sharma will enable the reconstitution of the Board.
The new Board of Paytm Payments Bank will include former chairman of Central Bank of India (CBI) Srinivasan Sridhar, retired IAS Debendranath Sarangi, former executive director of Bank of Baroda (BOB) Ashok Kumar Garg and retired IAS Rajni Sekhr Sibal.
The company said in a press release that the Board has a former Executive Director of Punjab and Sind Bank, Shri Arvind Kumar Jain, as Independent Director and Sudhir Chawla as Managing Director and CEO at Paytm Payments Bank.
India’s Central Bank RBI asked Paytm Bank to stop further deposits, credit transactions, top-ups in any customer account, Wallets, FASTags, and National Common Mobility cards for non-compliance with certain norms.
NCPI examining the Paytm Request
National Payments Corporation of India (NCPI) is examining the request from Paytm to become a third-party application provider to facilitate 4 – 5 banks to act as service providers.
Paytm is likely to partner with HDFC Bank, SBI, Axis Bank, and Yes Bank to process the transactions through a Unified Payment Interface. However, any official confirmation is yet to be announced.
Paytm to set up an Advisory Committee
One97 Communication Limited brand Paytm, which Alibaba, Softbank and Berkshire Hathaway back, has also set up an advisory committee to advise the company on strengthening regulatory matters.
Yesterday, Paytm shares price hit an upper circuit and closed the session at Rs 428.10 with a gain of 4.99%. Today, Paytm stock is trading in green and quoting the price at Rs 432.30 with a rise of 1.03%.