Paytm CEO asserts independence of Paytm Payments Bank board

During a webinar on Monday, Vijay Shekhar Sharma, CEO of digital payments firm Paytm, stressed on the autonomy of the board of directors of Paytm Payments Bank in addressing regulatory issues, dissociating himself and Paytm from the bank's operations.

Sharma stated, "I, personally or anyone from OCL, have no connection with the payments bank," referring to One97 Communications Ltd, the parent company of Paytm.

Assuring stakeholders, Sharma reiterated his confidence in the independence and capability of the board to manage regulatory concerns effectively.

The affirmation comes in response to the Reserve Bank of India's (RBI) directive issued in late January, instructing Paytm Payments Bank to cease accepting new deposits in its accounts or digital wallets from March, citing regulatory oversight issues and ongoing non-compliance with regulations.

As per regulatory norms, Paytm Payments Bank's parent company, One97 Communications, owns 49 per cent of the bank, while Sharma holds the remaining 51 per cent.

Following the RBI's directive, Sharma resigned from his position as non-executive chairman and board member of Paytm Payments Bank in February, signalling a commitment to compliance and regulatory adherence.

(With Reuters inputs)