Vijay Shekhar Sharma Steps Down from Paytm Chairmanship, a firm that was founded by him in 2010 as a mobile recharge and bill payment platform. Under Sharma’s leadership, Paytm quickly evolved into one of India’s leading digital payment platforms, revolutionizing the way people transact in the country. As of February 2024, Paytm’s market capitalization stands at $4.66 billion, positioning it as the 2665th most valuable company globally based on market cap, as per our data. A notable fact amid international political uproar is the ‘Saif III Mauritius Co. Ltd.’ Holds 10.83 (net worth of 2,942.60 Crores) percent of One97 Communications Ltd. Vijay Shekhar Sharma holds a 19.40% stake in the Co.
Sharma embarked on his entrepreneurial endeavors, founding One97 Communications Limited in 2000. The company initially started as a provider of mobile content and commerce services. In 2010, Paytm, short for “Pay Through Mobile,” was launched as a mobile recharge and bill payment platform. Under Sharma’s leadership, Paytm quickly evolved into one of India’s leading digital payment platforms, revolutionizing the way people transact in the country. With the introduction of Paytm Wallet in 2014 it reached millions of users across India facilitating cashless transactions.
on January 31st the RBI implemented regulatory measures against Paytm Payments resulting in the bank being prohibited from providing banking services starting from March. This regulatory action by the RBI against Paytm Payments Bank marks the conclusion of a four-year dispute between the two entities, primarily revolving around issues such as IT segregation, risk management, and operational disparities, along with ongoing breaches of KYC and customer onboarding regulations.
In a strategic move aimed at bolstering governance standards amidst regulatory scrutiny, Vijay Shekhar Sharma has stepped down from his role as the part-time non-executive chairman and board member of Paytm Payments Bank (PPBL), according to a recent regulatory filing by One 97 Communications Ltd (OCL), the parent company of Paytm.
This pivotal shift in leadership comes alongside a significant restructuring of PPBL’s board, signaling a commitment to enhancing operational integrity and regulatory compliance. The newly appointed board members, including ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal, bring a wealth of experience and expertise to the table.
OCL expressed its support for PPBL’s decision to transition to a board composed solely of independent and executive directors, aligning with industry best practices. The departure of Vijay Shekhar Sharma from the board is seen as a proactive measure to facilitate this transition, with PPBL commencing the process of appointing a new Chairman.
Furthermore, the board has welcomed the addition of former Executive Director of Punjab & Sind Bank Arvind Kumar Jain as an Independent Director, alongside Surinder Chawla, who continues to serve as MD & CEO at Paytm Payments Bank.
Surinder Chawla, MD & CEO at Paytm Payments Bank, emphasized the significance of the new appointments, highlighting their potential to drive PPBL’s growth trajectory and governance standards. He underlined the importance of their expertise in guiding the bank towards operational excellence and regulatory compliance.
Srinivasan Sridhar, newly appointed Board Member at Paytm Payments Bank, expressed his dedication to leveraging his banking experience to expand the bank’s range of compliant services. He stressed the importance of regulatory compliance and stakeholder value in steering PPBL towards success.
Similarly, Debendranath Sarangi, another newly appointed Board Member, reiterated his commitment to upholding the highest standards of regulatory compliance and corporate governance. He emphasized the importance of operational excellence and adherence to regulatory guidelines in shaping PPBL’s future.
The RBI’s directive underscores the importance of stringent regulatory compliance in the financial services sector, prompting Paytm Payments Bank to initiate significant governance reforms. The appointment of seasoned professionals to the board reflects a proactive approach towards addressing regulatory concerns and ensuring operational robustness. The recent board reshuffle signals a renewed commitment to regulatory adherence and sets the stage for a more robust and sustainable future for Paytm Payments Bank.