Mumbai: Paytm Payments Bank Ltd's (PPBL) managing director and CEO SurinderChawla has resigned from the company, according to a regulatory filing by Paytm brand owner One97 Communications on Tuesday. Chawla has cited personal reasons and a desire to explore new career options as the reasons for his resignation.
“He will be relieved from PPBL with effect close of business hours on June 26, 2024 unless changed by mutual consent,” One97 Communications said in the statement. His resignation comes after the Reserve Bank of India (RBI) halted the PPBL basis banking services a month ago due to persistent compliance issues and supervisory concerns.
Chawla had joined PPBL in January last year. Paytm, formally known as One 97 Communications, and its banking unit also mutually agreed to end various inter-company agreements, as part of Paytm's efforts to cut ties with its troubled banking unit.
‘’Nearly all agreements between the company and Paytm Payments Bank have been terminated as per our disclosure on March 1, 2024'', said One97 Communications in its statement. The board of PPBL has been
reconstituted with five independent directors including an independent chairperson, and no nominees from the company, as per our disclosure on February 26, 2024.
‘’In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services," said the company in its statement. On March 14, the National Payments Corporation of India (NPCI) granted approval to parent entity One97 Communications to participate in unified payments interface (UPI) services as a third-party application provider under a multi-bank model.
Currently, Axis Bank, HDFC Bank, State Bank of India and Yes Bank act as payment system provider banks to Paytm.
