Financial technology firm Paytm has confirmed that Manju Agarwal, an independent director at Paytm Payments Bank Limited (PPBL), has resigned. The company said in an exchange filing that Manju Agarwal resigned from its banking arm due to ‘personal commitments’. Recently, the Reserve Bank of India (RBI) imposed restrictions on the payments bank.
“We hereby submit that our associate entity, PPBL, has informed us that Manju Agarwal, Independent Director, resigned from its Board on February 1, 2024, due to her personal commitments which was noted by PPBL board on February 6, 2024,” said Paytm in the regulatory filing, as quoted by Hindustan Times.
Manju Agarwal had been serving on the Paytm Payments Bank Limited board since May 2021. She also worked with the State Bank of India (SBI) and served in various important roles, including General Manager (Network) and Deputy Managing Director and Chief Operating Officer (COO), reported the Hindustan Times.
A CNBC-TV18 report, citing a person familiar with the matter, indicated that Manju Agarwal’s resignation was prompted by her concerns about associating with the firm following the RBI’s restrictions. The report said that Manju Agarwal was also concerned about how the new developments might affect her board membership at other firms. Notably, the veteran banker is reportedly holding board memberships at various companies, including Polycab, Glenmark Life, and Switch Mobility.
On January 31, the country’s apex bank issued a directive restricting Paytm Payments Bank from accepting new deposits or allowing credit transactions after February 29, 2024. According to the RBI, this action was precipitated by Paytm Payments Bank’s “persistent non-compliances.”
However, the company said that it does not impact existing balances in accounts or wallets and added that users money is safe. One 97 Communications Limited, the parent company of Paytm Payments Bank, recently announced the formation of an advisory committee headed by former SEBI chairman M. Damodaran. The three-member committee will advise the firm on strengthening compliance and on regulatory matters.