HT Digital,
Mumbai, Feb 26: Vijay Shekhar Sharma, the founder of Paytm, resigned as the chairman of Paytm Payments Bank (PPBL) on February 26, 2024, . This move came ahead of a March 15 deadline set by the Reserve Bank of India (RBI) for the bank to comply with licensing regulations.
The RBI regulations mandate that payments banks cannot have their promoters hold more than a 35% stake and cannot have the same individual serving as chairman of both the promoter company (Paytm) and the payments bank (PPBL). Sharma’s resignation helps PPBL comply with these regulations.
Related Posts:
By stepping down, Sharma aims to focus on Paytm’s overall strategy of becoming a “super app” offering a wide range of financial and non-financial services.
PPBL has reconstituted its board with Sharma’s departure. The new board is yet to announce a new chairman. The long-term impact of Sharma’s resignation on PPBL’s operations and its relationship with Paytm remains to be seen.
As of today, February 26, 2024, Sharma is no longer associated with PPBL in any official capacity. PPBL is working towards meeting the RBI’s compliance deadline of March 15, 2024.
