Vijay Shekhar Sharma has stepped down as chairman of Paytm Payments Bank after the bank reconstituted the board.
According to the One 97 Communications Ltd (OCL), the parent firm of Paytm said that Vijay Shekhar Sharma has stepped down as part-time non-executive chairman and board member to enable the transition.
The development has come after the Reserve Bank of India (RBI) asked National Payments Corporation of India (NPCI) to examine use of UPI channel to allow Paytm App to continue operations and facilitate migration of @paytm handles to 4-5 banks.
Last month, the RBI barred Paytm Payments Bank Ltd (PPBL) from further deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., other than any interest, cashbacks, or refunds which may be credited anytime.
RBI's action against Paytm was taken after a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.
The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, according to the order.
