Vijay Shekhar Sharma Leaves PPBL Board; Appointment of New Chairman on the Horizon

Paytm founder Vijay Shekhar Sharma has resigned from the board of Paytm Payments Bank Limited (PPBL), marking a significant development in the financial sector. This move signifies a shift in one of India's top digital banks' leadership and governance, making it a momentous occasion for Sharma and the business he founded.

Paytm's parent One 97 Communications Ltd (OCL) on Monday announced that Paytm Payments Bank Ltd (PPBL) has reshuffled its management and Vijayshekhar Sharma has stepped down as interim non-executive director to facilitate the transition.

In order to enable a seamless transition within the company, Sharma's resignation as non-part-time chairman was highlighted in a statement released by One 97 Communications Ltd (OCL), the parent company of Paytm. The PPBL board has been planning a reorganisation to realign its operational goals and strategic direction since his departure.

The filing stated, According to the sources- "The company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman".

Significant business restrictions were imposed on PPBL on January 31 by the Reserve Bank of India (RBI), which forbade the company from accepting new deposits or carrying out credit transactions as of February 29. But the RBI moved up this deadline to March 15 on February 16.

 To permit the continuous operation of the Paytm UPI app, the National Payments Corporation of India (NPCI) is currently reviewing a request from One97 Communication to be authorised as a Third-Party Application Provider (TPAP) for the UPI channel.

"The Reserve Bank of India stated on its website that the thorough audit conducted by external auditors, along with the subsequent compliance validation report, uncovered ongoing non-compliance issues and significant supervisory concerns within the bank, prompting the need for additional supervisory measures."

In conclusion, the exit of Vijay Shekhar Sharma from the PPBL board represents a critical turning point in the development of one of the top digital payment platforms in India. Despite his enormous contributions to the organisation, his decision to retire heralds a new phase in PPBL's history, one marked by new strategic imperatives and leadership viewpoints. In an ever-changing fintech landscape, maintaining momentum, promoting innovation, and providing value to customers continue to be the primary priorities of Paytm as it prepares to name a new chairman.