Vijay Shekhar Sharma Resigns As Chairman Of Paytm Payments Bank Amid RBI Action - All About It

Paytm CEO Vijay Shekhar Sharma has Stepped down as the Non-Executive chairman and board member of Paytm Payments Bank on Monday (27 February).

The decision comes in the wake of ongoing regulatory issues confronting the digital payments giant.

As reported earlier, the reserve bank of India (RBI) had imposed several measures on Paytm payments bank, including an order to wind down operations by 15 march due to compliance issues and supervisory concerns.

As a result, Paytm Payments Bank underwent a major board overhaul, with new independent and executive directors joining.

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Paytm's restructuring of the board is seen as an effort to demonstrate compliance with regulatory norms.

Vijay Sharma, who owns a 51 per cent stake in Paytm Payments Bank, cited strategic reasons for his resignation and the appointment of independent directors.

The move is intended to facilitate a smooth transition and enhance governance structures, while also positioning Paytm as an independent entity from its payments bank unit.

Meanwhile, the regulatory challenges have impacted Paytm's stock value, but recent partnerships with new banking entities and an extension of the deadline for winding down operations have led to some recovery.

Recently, Finance Minister Nirmala Sitharaman convened a meeting with fintech industry representatives to discuss regulatory concerns.

However, the developments at Paytm payments bank were not specifically addressed during this meeting.

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