Vijay Shekhar Sharma, Paytm founder has resigned as the non-executive chairman and board member of Paytm Payments Bank Ltd (PPBL).
The development comes at a time when PPBL faces regulatory hurdles from the Reserve Bank of India (RBI).
The RBI has asked PPBL to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, by March 15, citing non-compliance with certain norms.
Vijay Shekhar Sharma has hit the headlines after launching the Paytm. PPBL has also reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, One 97 Communications Limited said in a regulatory filing on Monday.
These persons had recently joined as Independent Directors, it said. One 97 Communications Ltd (OCL) is the owner of the Paytm brand.
Vijay Shekhar Sharma quits, Paytm looks to partner with four banks
The Paytm has placed a request with RBI for becoming a third party application provider and to facilitate four-to-five banks to act as service providers for it. The banking regular has asked the National Payments Corporation of India (NPCI) to examine the proposal.
According to sources, Paytm is looking at partnering with Axis Bank, HDFC Bank, State Bank of India and Yes Bank for processing transactions via the popular unified payments interface (UPI). However, the development could not be confirmed as spokesperson so either of the banks refused to comment on it.
However , NPCI will take about a month's time to check the bank's technology and related infrastructure and the feasibility of partnership of those banks with Paytm.
Paytm, which is backed by SoftBank, Alibaba and Berkshire Hathaway, has also set up an advisory committee headed by former chairman of Sebi M Damodaran to advise the company on strengthening compliance and on regulatory matters.
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