Paytm Founder and CEO Vijay Shekhar Sharma, nominee of One97 Communications Ltd (OCL) in Paytm Payments Bank, has resigned from Paytm Payments Bank board as its part-time non-executive chairman and board member. Simultaneously, the crisis-ridden Paytm Payments Bank Limited (PPBL) has reconstituted its Board opting for a structure with only independent and executive directors.

One97 Communications, which held 49 per cent in the payments bank, has withdrawn its nominee Sharma, who also owned 51 per cent in the Payments Bank in his personal capacity.

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Sharma, who was Part-Time non-executive Chairman and Board member of PPBL, has resigned from the board of Paytm Payments Bank to enable this transition, according to an OCL filing with the exchanges on Monday evening.

PPBL has commenced the process of appointing a new Chairman, it added.

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The reconstituted Board of PPBL comprised 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 Retd. IAS Rajni Sekhri Sibal. They have recently joined as Independent Directors.

OCL, in its exchange filing, said it supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee. 

Commenting on the Board reconstitution, Surinder Chawla, MD & CEO at Paytm Payments Bank said, “We welcome the appointment of Srinivasan Sridhar, Debendranath Sarangi, Ashok Kumar Garg, and Rajni Sekhri Sibal to our Board, marking a significant step forward in PPBL’s journey. Their distinguished expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices.”

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Srinivasan Sridhar, Board Member, Paytm Payments Bank Board, said, “I am dedicated to utilising my extensive banking expertise to steer the bank towards expanding its range of compliant services. It is my goal to ensure that PPBL becomes a paragon of regulatory compliance, setting new standards in delivering exceptional value to the stakeholders, in strict adherence with regulatory frameworks and best practices.”

Debendranath Sarangi, Board Member, Paytm Payments Bank, said, “Assuming this expanded role at a critical juncture for PPBL, my dedication is firmly rooted in adhering to and exceeding the highest standards of regulatory compliance and corporate governance. I am wholly committed to applying my expertise to navigate PPBL towards a future characterised by operational excellence, ensuring strict compliance with regulatory guidelines and fostering a culture of best practices.”