Vijay Shekhar Sharma is leaving his position as chairman of Paytm Bank

MUMBAI: Vijay Shekhar Sharma, the founder and largest stakeholder of Paytm Payments Bank, has resigned as the non-executive chairman of the bank’s board, over a month after the RBI took action to restrict the bank’s activities. Bhavesh Gupta, the nominated director of parent firm One97 Communications, has also resigned from the bank’s board.

Sharma’s seven-year career in banking as a fintech entrepreneur comes to an end with his exit from the board.

He will still serve as the CEO of One97 Communications, the company that owns the Paytm app and brand. The app will function as a third-party application provider for UPI transactions in the future.
The bank reorganized and named three new members: retired officials Debendranath Sarangi and Rajni Sekhri Sibal, former Bank of Baroda executive director Ashok Kumar Garg, and former chairman of the Central Bank of India Srinivasan Sridhar.

As Paytm Payments Bank is no longer permitted to issue capital, the new board’s responsibility will be to oversee the company’s peaceful dissolution. Customers may keep using their accounts, wallets, Fastags, and other prepaid devices until their balances are exhausted, even though they will not be able to deposit money after March 15.
The remaining board members are Surinder Chawla, MD & CEO of Paytm Payments Bank, and Arvind Kumar Jain, a former ED of Punjab & Sind Bank who serves as an independent director.
One97 Communications withdrew its candidacy in a statement expressing support for the choice to switch to a board made up entirely of independent and executive directors. Sharma’s resignation from the board to enable this transition was also announced by the corporation. A new chairman will be appointed by Paytm Payments Bank.

One97 Communications holds the remaining 51% of Paytm Payments Bank, which is owned by Sharma. Paytm’s shares increased by 5% on Monday after a report by Goldman Sachs stating that the RBI’s confirmation that Paytm UPI handles may be easily transferred to other banks has cleared up a significant ambiguity for the company.
Garg, the newest board member, has 39 years of banking expertise. He was formerly the MD of the Bank of Baroda in Uganda and the head of the bank’s US operations in New York. Sarangi is a director on the boards of Voltas and Southern Petrochemical Industries, acting as an independent.