Updated February 12th, 2024 at 12:03 IST
Paytm confirms resignation of Manju Agarwal from Paytm Payments Bank board
Paytm has formed an advisory committee to address compliance and regulatory matters after RBI directed its payments arm for partial suspension of operations.
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Paytm Director resignation: Beleaguered fintech giant Paytm on Monday confirmed the resignation of Manju Agarwal, an independent director from the board of Paytm Payments Bank.
“Manju Agarwal, Independent Director resigned from the Board of PPBL on February 1, 2024, due to her personal commitments which was noted by the PPBL Board on February 6, 2024,” Paytm said in a statement.
Last week, in response to the RBI's directive, Paytm announced its intention to establish an advisory committee focused on compliance and regulatory matters. This committee, as confirmed by Paytm, will be chaired by former chairman of the Securities and Exchanges Board of India (Sebi), M Damodaran, and will collaborate closely with the board to address regulatory concerns.
The RBI's action against Paytm Payments Bank came amid concerns of persistent non-compliance with regulatory guidelines. The central bank instructed the banking affiliate to cease several key operations, including deposits, credit products, and popular digital wallets, by February 29. Paytm Payments Bank, a regulated entity, facilitates deposits for Paytm users to conduct transactions on the app.
Paytm's regulatory woes extend beyond the RBI's directives. The company has also come under scrutiny for alleged violations of foreign exchange rules, prompting investigations by India's anti-fraud agency. Paytm vehemently denies these allegations, describing them as "unfounded and factually incorrect."
The fallout from these regulatory challenges has taken a toll on Paytm's financial standing. Since the RBI's action on January 31, Paytm's stock has plummeted by 45 per cent, wiping out $2.6 billion of shareholders' wealth.
Published February 12th, 2024 at 11:12 IST