Paytm Payments Bank MD and CEO Surinder Chawla steps down; check details

Paytm Payments Bank MD resigns: One97 Communications, the parent company of fintech firm Paytm, informed exchanges on April 9, Tuesday, that Surinder Chawla, the managing director and CEO of Paytm Payments Bank (PPBL), tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. 

He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent, the exchange filing added. 

"As informed earlier, nearly all agreements between the company and PPBL have been terminated as per our disclosure on March 1, 2024, and the board of PPBL has been reconstituted with five independent directors, including an independent chairperson, and no nominees from the company, as per our disclosure on February 26, 2024. In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquisition and UPI services," the filing added.

Shares of One97 Communications ended 1.95 per cent lower at Rs 404.30 on the BSE. Chawla joined PPBL in January of last year, following the Reserve Bank of India's clearance of the payments bank.

On January 31, 2024, RBI ordered Paytm Payments Bank (PPBL) to cease taking deposits or top-ups in any client accounts, wallets, FASTags, or other instruments after February 29. The deadline was then extended to March 15.

The direction follows persistent non-compliance and continued material supervisory concerns, the central bank said in a statement. On March 11, 2022, RBI prohibited PPBL from onboarding new customers, effective immediately.

Promoter Vijay Shekhar Sharma resigned from his position as part-time non-executive chairman of Paytm Payments Bank Limited last month in response to regulatory measures, and the bank's board was reorganised.

Two retired Indian Administrative Service (IAS) executives, former Bank of Baroda executive director Ashok Kumar Garg and former chairman of the Central Bank of India Srinivasan Sridhar, were admitted onto the bank's board. 49 per cent of PPBL is owned by One97 Communications Limited (OCL).

According to a March 1, 2024, disclosure from Paytm, almost all of the agreements between the company and PPBL have ended. On February 26, 2024, the company disclosed that PPBL's board has been reconstituted with five independent directors, including an independent chairperson, and no nominations from the company.

Later, One97 Communications Ltd was permitted by the National Payments Corporation of India (NPCI) to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model.

Participating banks include Axis Bank, HDFC Bank, State Bank of India, and YES Bank as Paytm's Payment System Provider (PSP) banks.

With inputs from PTI