Paytm Payments Bank Crisis: Surinder Chawla Steps Down As MD & CEO

Surinder Chawla has stepped down as the MD and CEO of Paytm Payments Bank, with effect from June 26, according to a company statement. Chawla had joined PPBL on January 9 last year.

“The company would like to update that it has been informed by its associate entity, Paytm Payments Bank Limited (PPBL) on April 8, 2024, at 5.23 pm, that Surinder Chawla, managing director and CEO of PPBL has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects,” One97 Communications, the owner of Paytm, said in a BSE filing on Tuesday.

He will be relieved from PPBL with effect from the close of business hours on June 26, 2024, unless changed by mutual consent, it added.

One97 Communications in the filing reiterated that “nearly all agreements between the Company and PPBL have been terminated as per our disclosure on March 1, 2024, and 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.”

The company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services, it said.

In February 2024, Vijay Shekhar Sharma also stepped down as chairman of Paytm Payments Bank as the embattled company overhauled its board in the wake of a central bank clampdown.

The bank reconstituted its Board of Directors with the appointment of 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. They have recently joined as Independent Directors, Paytm said in an exchange filing.

The Reserve Bank of India earlier has asked Paytm Payments Bank to wind down its operations by March 15 due to persistent non-compliance and continued material supervisory concerns, triggering a meltdown in Paytm’s stock.

The action against Paytm Payments Bank followed “serious supervisory concerns”, including inadequate customer identify and a lack of arm’s length distance with Paytm, according to reports.