Paytm Bank Reconstitutes Board, Fintech Firm's CEO Quits Board As RBI Troubles Mount

In response to mounting regulatory challenges from the Reserve Bank of India (RBI), Paytm Payments Bank Limited (PPBL) has taken decisive action by reconstituting its Board of Directors. This move comes amidst ongoing scrutiny from the RBI over persistent non-compliance and material supervisory issues within PPBL.

Effective immediately, the newly appointed board members include esteemed figures from the banking and administrative sectors: Srinivasan Sridhar, former Chairman of the Central Bank of India; Debendranath Sarangi, retired IAS officer with extensive experience in public administration; Ashok Kumar Garg, former Executive Director of Bank of Baroda; and Retd. IAS Rajni Sekhri Sibal, a veteran bureaucrat with a wealth of governance expertise.

In a significant development, Vijay Shekhar Sharma, the CEO of the parent company One 97 Communications Ltd (OCL), has stepped down from his role as Part-Time non-executive Chairman and Board member of PPBL. This decision aligns with PPBL”s strategy to transition to a board comprising only independent and executive directors, a move endorsed by OCL.

Mr Sridhar, expressing his commitment to ensuring regulatory compliance and operational excellence, stated, “I am dedicated to utilizing my extensive banking expertise to steer the bank towards expanding its range of compliant services.” Meanwhile, Mr Sarangi emphasized his dedication to upholding the highest standards of regulatory compliance and corporate governance.

Mr Sridhar brings with him an illustrious career in banking spanning over 40 years. He is currently serving as the Independent Director at Jubilant Pharmova. He has held leadership positions at Export Import Bank of India, Central Bank of India and National Housing Bank.

Mr Sarangi, retired IAS (1977 batch) of Tamil Nadu cadre, is a veteran in public administration and corporate governance. He is currently serving as an Independent director on the boards of several companies including Southern Petrochemical Industries Corporation Limited and Voltas Ltd, among others.

Mrs Sibal is a retired IAS officer of Haryana cadre (1986 batch) with 38 years of experience in administration and governance. She has served as Secretary, Government of India. Currently, she serves as an Independent External Monitor in the Public Sector and as an Independent Director in Corporates.

Mr Garg, with 39 years of diverse banking experience, has held significant positions including whole time Director at Bank of Baroda, Chief Executive for USA operations of the bank at New York, Managing Director of Bank of Baroda (Uganda) Ltd at Kampala and Chairman/Director of its subsidiaries in Guyana, Trinidad & Tobago and Kenya. Beyond these, the board has former Executive Director of Punjab & Sind Bank Arvind Kumar Jain as Independent Director and Surinder Chawla, MD & CEO at Paytm Payments Bank.