NEW DELHI, Apr 10
Surinder Chawla on Monday resigned as the managing director and chief executive officer of Paytm Payments Bank, citing personal reasons.Chawla will be relieved from Paytm Payments Bank with effect from the close of business hours on June 26, unless changed by mutual consent, the payments bank’s associate One97 Communications said in an exchange filing on Tuesday. Chawla will be relieved from his duties at the Paytm Payments Bank with effect from the close of business hours on June 26, unless otherwise mutually agreed upon, an exchange filing by the payments bank’s associate, One97 Communications, said on Tuesday.
Chawla had joined Paytm Payments Bank in January 2023One97 Communications, the owner of the Paytm brand, in the filing, disclosed that most agreements between the company and PPBL have been terminated. “The the board of PPBL has been reconstituted with five independent directors including an independent chairperson, and no nominees from the company,” the filing read.”One97 Communications continues to collaborate with banking partners to enhance our merchant acquiring and unified payments interface (UPI) services,” it said.
On February 26, Paytm founder and CEO Vijay Shekhar Sharma resigned from the board of Paytm Payments Bank to facilitate the board’s reconstitution. On January 31, the Reserve Bank of India (RBI) had directed Paytm Payments Bank to stop accepting fresh deposits, credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards after February 29. Subsequently, the deadline was extended to March 15. This dented the ability of the payments bank to continue operations. Earlier, on January 31, the Reserve Bank of India (RBI) had directed Paytm Payments Bank to stop accepting fresh deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards after February 29.
The deadline was later extended to March 15.
This impacted the payments bank’s ability to continue operations. Subsequently, on March 14, the National Payments Corporation of India (NPCI) granted approval to One97 Communications to participate in UPI services as a third-party application provider (TPAP) under the multi-bank model.This license enables Paytm to continue offering UPI services to its app users. Under the new model, Paytm will provide the payment service in partnership with four new banks—Axis Bank, HDFC Bank, State Bank of India, and Yes Bank—who will act as its Payment System Providers (PSP).
