An independent director at Paytm Payments Bank resigned following RBI enforcement
Manju Agarwal, an independent director at Paytm Payments Bank, resigned from the board, effective February 1st.
Manju Agarwal, an independent director at Paytm Payments Bank, stepped down from the board following regulatory action by the Reserve Bank of India.
As per a PTI report, Agarwal’s resignation from the board was effective from February 1st. This development occurred following the central bank’s decision to prohibit Paytm Payments Bank from receiving new deposits or top-ups in customer accounts, wallets, FASTags, or other instruments starting from February 29th.
One97 Communications Limited, an affiliate of Paytm Payments Bank, owns 49 percent of the paid-up share capital of PPBL directly and through its subsidiary. CEO Vijay Shekhar Sharma holds a 51 percent stake in the bank.
The central bank announced on Thursday that the action against Payments Bank was a result of ‘ongoing non-compliance’.
RBI Governor Shaktikanta Das stated, “We prioritize direct engagement with regulated entities, aiming to encourage corrective measures. Adequate time is provided for implementing such corrective measures. In cases where this collaborative approach proves ineffective or if the regulated entity fails to take appropriate action, we resort to implementing supervisory or business restrictions.”
Prior to the RBI statement, Paytm founder and CEO Vijay Shekhar Sharma had held meetings with both the RBI and Finance Minister Nirmala Sitharaman. Reports indicate that the central bank declined to offer concessions to the payments gateway, including extending the February 29 deadline.
In his meeting with Sitharaman, Sharma was informed by the minister that the action against Paytm Payments Bank is a regulatory matter, and the government is unable to intervene on behalf of the company.
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