Surinder Chawla, Managing Director (MD) and Chief Executive Officer (CEO) of troubled payments company Paytm Payments Bank, has resigned. Chawla has resigned at a time when Paytm Payments Bank Limited (PPBL) is facing strict action from the Reserve Bank of India (RBI).
One97 Communications, the company that operates the Paytm brand, informed the stock market about this resignation on Tuesday. The company said, “Chawla resigned on April 8, 2024 for personal reasons and to explore better career opportunities.” He will be relieved from PPBL after working hours on June 26, unless there is a change by mutual consent.
Chawla had joined PPBL in January last year
Chawla had joined PPBL only in January last year. But due to repeated violations of regulatory standards during his tenure, PPBL recently came under strict instructions from RBI. RBI, in its order on January 31, had said that PPBL should not accept deposits or top-ups in any customer account, wallet, Fastag and other instruments after February 29. Later this deadline was extended till March 15.
PPBL is a subsidiary of Paytm
Following the RBI crackdown, Paytm promoter Vijay Shekhar Sharma stepped down as part-time non-executive chairman of PPBL last month and the bank’s board of directors was reconstituted. One97 Communications Limited (OCL) holds 49 per cent stake in PPBL. However, Paytm refers to PPBL as its subsidiary.
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Paytm said that almost all the agreements between OCL and PPBL have been terminated on March 1, 2024. Additionally, the company continues to collaborate with banking partners to enhance merchant engagement and UPI services. National Payments Corporation of India (NPCI) on Thursday approved OCL to participate in UPI as a third-party application provider (TPAP) under the multi-bank model. Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system provider (PSP) banks for Paytm.
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“The company would like to announce that, on April 8, 2024, at 5:23 PM, Paytm Payments Bank Limited (“PPBL”), its associate entity, notified it that Mr. Surinder Chawla, Managing Director and CEO of PPBL, had tendered his resignation on that same day due to personal reasons and to investigate better career opportunities,” said Paytm.
“He will be relieved from PPBL w.e.f. close of business hours on June 26,2024, unless changed by mutual consent,” the statement read.
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