Paytm Payments Bank's MD, CEO Surinder Chawla Resigns

Paytm Payments Bank's Managing Director and CEO, Surinder Chawla, announced his resignation effective April 8, citing personal reasons and a desire to explore new career opportunities. According to a filing with the stock exchange, Chawla will step down from his role on June 26.

In a statement to the stock exchanges, One 97 Communications revealed that nearly all agreements between the company and Paytm Payments Bank have been terminated. The board of Paytm Payments Bank was restructured with five independent directors, including an Independent Chairperson, and no nominees from the company.

One 97 Communications also affirmed its commitment to enhancing merchant acquiring and UPI services in collaboration with banking partners.

Moreover, on February 26, Vijay Shekhar Sharma resigned from the Board of Paytm Payments Bank Ltd to facilitate the board's reconstitution. OCL (One 97 Communications Limited) informed the exchanges about this development and noted that PPBL would begin the process of appointing a new chairman.

On January 31, the RBI imposed significant business restrictions on Paytm Payments Bank, including a ban on accepting fresh deposits and conducting credit transactions after February 29. This deadline was later extended to March 15 on February 16.

On March 14, The National Payments Corporation of India (NPCI) granted approval to One97 Communications Limited (OCL), Paytm's parent entity, to participate in UPI services as a Third-Party Application Provider (TPAP) under a multi-bank model.

This license allows Paytm to continue offering Unified Payments Interface (UPI) services to its app users after its banking unit, Paytm Payment bank Limited (PPBL), ceases operations post-March 15 due to regulatory action.

Under the new model, Paytm will collaborate with four new banks—Axis Bank, HDFC Bank, State Bank of India, and Yes Bank—to provide payment services, with these banks acting as its Payment System Providers (PSP).

Also Read: YES Securities Gives 'Buy' Call For Paytm Parent Firm One97 Communications