Surinder Chawla Steps Down As MD And CEO Of Paytm Payments Bank

In a recent communication to the stock exchanges, One 97 Communications Ltd.,  the parent company of Paytm, reiterated its commitment to its banking partners

Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank Limited (PPBL) submitted his resignation papers on April 8, according to a stock exchange filing by the company. Chawla stated personal reasons and a desire to explore better career opportunities were his reasons for stepping down from the position. The release mentioned that he will be formally relieved from his role at PPBL on June 26, 2024.

In a recent communication to the stock exchanges, One 97 Communications Ltd.,  the parent company of Paytm, reiterated its commitment to its banking partners. The majority of agreements between the company and PPBL have been terminated, but this does not affect our commitment to our partners. Furthermore, it was disclosed that the board of Paytm Payments Bank has been restructured, now comprising five independent directors, among whom an Independent Chairperson has been appointed, with no representatives nominated by the company. Additionally, One 97 Communications affirmed its ongoing collaboration with banking partners to further improve services related to merchant acquiring and UPI.

Meanwhile, on February 26, Vijay Shekhar Sharma resigned from the Board of the crisis-hit PPBL. Vijay Shekhar Sharma gave his resignation from the Board of Paytm Payments Bank to facilitate the restructuring of the board, as announced by One97 Communications in its disclosure to the bourses. Additionally, the firm mentioned, "PPBL has informed us that they will initiate the process of appointing a new chairman."

On January 31, the Reserve Bank of India (RBI) imposed significant business limitations on PPBL, prohibiting it from accepting new deposits and conducting credit transactions after February 29. However, on February 16, the deadline was extended to March 15. Subsequently, on March 14, The National Payments Corporation of India (NPCI) granted approval to One97 Communications to participate in UPI services as a Third-Party Application Provider (TPAP) within the multi-bank model.