Vijay Shekhar Sharma steps down from the board of Paytm Payments Bank

Paytm Payments Bank (PPBL) has reconstituted its board of directors and Vijay Shekhar Sharma has stepped down as the part time Non-executive chairman of PPBL.

One 97, that is the parent company of Paytm has withdrawn its nominee from paytm payments bank. PPBL will now commence the process of appointing a new chairman.

These developments come ahead of the March 15th deadline by the RBI, post which, PPBL can't accept any fresh deposits, topups or carry out any credit transactions. The Reserve Bank of India's action is due to persistent non-compliance and continued material supervisory concerns in the bank.

Paytm Payments Bank has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, Paytm said in a regulatory filing on Monday.

"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," the filing said.

OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee, it added.

"PPBL's future business to be led by a reconstituted Board," the filing stated.