Paytm Monday informed that Vijay Shekhar Sharma would step down as non-executive chairman and board member of its payments banks unit.
This comes as Paytm overhauls its board after a central bank clampdown.
The action against Paytm Payments Bank followed serious supervisory concerns, including inadequate customer identity and a lack of arms-length distance with Paytm, NDTV reported quoting Reuters.
The Reserve Bank of India has asked the banking unit to wind down its operations by March 15 due to persistent non-compliance and continued material supervisory concerns, triggering a meltdown in Paytms stock.
Srinivasan Sridhar, former chairman of state-owned Central Bank of India, former Bank of Baroda Executive Director Ashok Kumar Garg and two retired Indian Administrative Service officers will join the board, Paytm said in an exchange filing.
The new board members expertise will be pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices, Paytm Payments Bank CEO Surinder Chawla said.
