Paytm CEO Affirms Independence of Payments Bank Board Amid Regulatory Concerns

GG News Bureau
New Delhi, 23rd April. Vijay Shekhar Sharma, CEO of Paytm, reassured stakeholders on Monday that the board of Paytm Payments Bank operates independently and possesses the capacity to address regulatory issues effectively.

During a webinar, Sharma emphasized the detachment of One97 Communications Ltd (OCL) – the parent company of Paytm – from the operations of the payments bank.

Sharma stated, “I, personally or anyone from OCL, have no connection with the payments bank. There is an independent board taking care of everything and we have full faith in their capability.”

The Reserve Bank of India (RBI) had directed Paytm Payments Bank in late January to cease accepting new deposits in its accounts or digital wallets from March due to supervisory concerns and persistent non-compliance with regulations.

As per regulatory requirements, One97 Communications owns a 49% stake in Paytm Payments Bank, while Vijay Shekhar Sharma holds the remaining 51%.

In response to the RBI’s directive, Sharma relinquished his roles as non-executive chairman and board member of Paytm Payments Bank in February, signaling a commitment to addressing regulatory concerns and ensuring compliance with regulations.