Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank, has resigned from his position, as per a regulatory filing on Tuesday. This development comes amid challenges faced by Paytm Payments Bank, including regulatory actions from the banking regulator Reserve Bank of India.
In the regulatory filing, One97 Communications, the owner of the Paytm brand, stated that Surinder Chawla tendered his resignation on April 8, 2024, citing personal reasons and to explore better career prospects.
Chawla is set to be relieved from his duties at Paytm Payments Bank effective close of business hours on June 26, 2024, unless otherwise mutually agreed upon.
Chawla had joined Paytm Payments Bank in January last year after the bank received approval from the Reserve Bank of India (RBI). However, the bank faced regulatory actions from the RBI, including directives to stop accepting deposits or top-ups in customer accounts, wallets, and other instruments, as well as restrictions on onboarding new customers.
In response to these regulatory actions, Vijay Shekhar Sharma, the promoter of Paytm Payments Bank, stepped down as part-time non-executive Chairman, and the bank’s board underwent reconstitution.
Former officials from Central Bank of India, Bank of Baroda, and retired Indian Administrative Service (IAS) officers were inducted into the bank’s board.
Additionally, One97 Communications terminated nearly all agreements with Paytm Payments Bank, and the bank’s board was reconstituted with five independent directors, including an independent chairperson, with no nominees from the company.
Despite these challenges, Paytm continues to collaborate with banking partners to enhance its merchant acquiring and UPI services. The National Payments Corporation of India recently granted approval to One97 Communications to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model, with Axis Bank, HDFC Bank, State Bank of India, and YES Bank acting as Payment System Provider (PSP) banks to Paytm.
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