Paytm Payments Bank's CEO steps down amid company restructuring
What's the story
Surinder Chawla, the CEO of Paytm Payments Bank, has announced his resignation effective June 26.
The announcement was made by Chawla citing personal reasons as well as a desire to explore new career opportunities.
This development comes as One 97 Communications (Paytm's parent company) decided to terminate most of its agreements with Paytm Payments Bank Limited (PPBL).
Restructuring
Board restructuring follows CEO's departure
Following Chawla's resignation, the board of PPBL has undergone a significant restructuring process.
This includes the appointment of five independent directors and an independent chairperson, with no representatives from One 97 Communications.
Prior to this, Vijay Shekhar Sharma stepped down from the PPBL board on February 26, as part of a broader strategy to restructure the board.
Restrictions
RBI imposes business restrictions on PPBL
Earlier this year, the Reserve Bank of India (RBI) imposed several business restrictions on PPBL.
These included a ban on accepting new deposits and conducting credit transactions after February 29.
However, the deadline for these restrictions was later extended to March 15.
In light of these changes, PPBL has announced plans to appoint a new Chairman.
Permission
Paytm's parent company granted permission for UPI services
Despite the challenges faced by PPBL, there is positive news for One97 Communications.
On March 14, the National Payments Corporation of India (NPCI) granted the firm permission to take part in UPI services, as a Third-party application provider (TPAP) under a multi-bank model.
This license permits Paytm to continue offering unified payments interface (UPI) services to its app users, even after PPBL ceased operations post-March 15 due to regulatory action.