Independent Director of Paytm Payments Bank Resigns Following RBI Regulatory Actions

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Paytm Payments Bank Director Resigns Amid RBI Crackdown

Manju Agarwal, an independent director at Paytm Payments Bank, has stepped down from the board effective February 1. This move follows the Reserve Bank of India's recent actions against the bank.

According to reports, Agarwal's resignation coincides with the RBI's decision to prohibit Paytm Payments Bank from accepting new deposits or top-ups in various customer accounts and instruments starting February 29. This regulatory action stems from what the RBI describes as "persistent non-compliance."




The Paytm Payments Bank, affiliated with One97 Communications Limited, faces restrictions as its parent company holds a 49% stake, while CEO Vijay Shekhar Sharma owns 51% of the bank.

RBI Governor Shaktikanta Das emphasized the central bank's approach of engaging with regulated entities to address issues, resorting to restrictions only when necessary due to ineffective corrective measures.

Recent reports indicate that Paytm founder Vijay Shekhar Sharma had discussions with both the RBI and Finance Minister Nirmala Sitharaman. Despite these efforts, the central bank declined concessions, including an extension to the February 29 deadline.

During the meeting with Sitharaman, Sharma was informed that the regulatory actions against Paytm Payments Bank are beyond the government's purview.

Disclaimer: This is a generally available information that we Gyaanliekh has collected from the internet, we haven't done any due diligence for the same. Please do the same before any action taken on the basis of news!





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