Paytm Payments Bank's director resigns

Paytm Payments Bank’s director resigns

Indian embattled fintech firm Paytm has confirmed recent media reports about an independent director resigning from its banking subsidiary Paytm Payments Bank.

Manju Agarwal stepped down from the Paytm Payments Bank board on February 1 citing personal commitments, according to the company’s filing with the stock exchange.

News agency PTI had earlier reported that Agarwal resigned after RBI’s missive to the fintech company.

The Reserve Bank of India in January issued a directive to Paytm Payments Bank to wind down the majority of its operations.

Paytm had previously announced its intention to establish an advisory committee focusing on compliance and regulatory issues. The company, in an official statement released on Friday, announced the formation of the Committee, comprising professionals such as MM Chitale, a former president of the Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of the Banking Codes and Standards Board of India, nominated by RBI.

Additionally, the Committee features banking experts like R Ramachandran, the former Chairman and Managing Director of Andhra Bank.

“The Board of One 97 Communications Limited (OCL, or the Company), which owns the brand Paytm, India’s leading payments and financial services distribution company and the pioneer of QR and mobile payments, today announced the formation of a Group Advisory Committee, of 3 members, chaired by M Damodaran,” it release stated.

Paytm Payments Bank Limited (PPBL) is an associate of One97 Communications Limited (OCL). One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake in the bank.

The RBI stated that Paytm’s continued failure to adhere to regulatory guidelines, despite repeated advisories, prompted the stringent measures taken against the fintech. On June 19, 2018, RBI, due to supervisory concerns, barred Paytm Payments Bank from initiating new account and wallet openings, effective June 20, 2018. This restriction was lifted by RBI on December 27, 2018, with retroactive effect from December 31, 2018.

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