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Paytm Payments Bank MD-CEO Surinder Chawla quits

Chawla joined PPBL in January last year after it got approval from the RBI

Paytm Payments Bank MD-CEO Surinder Chawla quits

Surinder Chawla

NEW DELHI: Beleaguered Paytm Payments Bank’s managing director and CEO Surinder Chawla has resigned from the company, a regulatory filing said on April 9.

Chawla’s resignation comes amidst Paytm Payments Bank facing prohibitory action from banking regulator RBI.

“Surinder Chawla, Managing Director and CEO of PPBL, has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL wef close of business hours on June 26, 2024, unless changed by mutual consent,” One97 Communications (OCL), Paytm brand owner, said in a regulatory filing.

Chawla joined PPBL in January last year after the payments bank received approval from the Reserve Bank of India.

In a major action against PPBL, RBI, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. Subsequently, the deadline was extended to March 15. The direction follows persistent non-compliance and continued material supervisory concerns, the central bank had said in a statement.

On March 11, 2024, the RBI barred PPBL from onboarding new customers with immediate effect.

Following regulatory actions, promoter Vijay Shekhar Sharma last month stepped down as part-time non-executive chairman of PPBL, and the board of the bank has been reconstituted.

Former Central Bank of India chairman Srinivasan Sridhar, former Bank of Baroda ED Ashok Kumar Garg, and two retired Indian Administrative Service officers were inducted on the board of the bank. OCL holds a 49% stake in PPBL.

Paytm said nearly all agreements between the company and PPBL have been terminated as per a 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 its disclosure on February 26, 2024.

“In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services,” the filing said.

The National Payments Corporation of India on Thursday granted OCL the approval to participate in UPI as a Third-Party Application Provider under the multi-bank model.

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