Amid Paytm crisis, MD and CEO Surinder Chawla resigns due to...

Paytm Payments Bank's Managing Director (MD) and CEO Surinder Chawla has resigned from the company. He tendered his resignation on April 8, 2024, due to personal reasons and to explore better career prospects. His resignation comes amidst Paytm Payments Bank Ltd (PPBL) facing prohibitory action from banking regulator RBI.

"He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent," One97 Communications, Paytm brand owner, said in a regulatory filing. Chawla joined PPBL in January 2023 after the payments bank received approval from the central bank.

RBI on January 31, directed PPBL 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, RBI had said in a statement. On March 11, 2022, 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 Paytm Payments Bank Limited, and the board of the bank has been reconstituted.

Former Central Bank of India chairman Srinivasan Sridhar, former Bank of Baroda Executive Director Ashok Kumar Garg, and two retired Indian Administrative Service (IAS) officers were inducted on the board of the bank.

(With inputs from PTI)

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