CEO Vijay Shekhar Sharma Reaffirms Confidence in Board
Vijay Shekhar Sharma, CEO of One97 Communications Ltd (OCL), reassured stakeholders regarding Paytm Payments Bank’s regulatory issues, stating that the bank’s independent and capable board is equipped to address them effectively. Sharma emphasized that neither he nor anyone from OCL has any personal involvement with the payments bank.
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RBI’s Directive and Response
The Reserve Bank of India (RBI) ordered Paytm Payments Bank to halt adding new customers to its accounts or digital wallets from March 2024 due to ‘material supervisory concerns’ and the bank’s failure to adhere to regulatory guidelines.
Paytm Payments Bank’s Structure
Paytm Payments Bank, an arm of One97 Communications, operates with One97 holding 49 percent of the bank, and Sharma holding the remaining shares. Sharma had to step down from the post of non-executive chairman and board member of Paytm Payments Bank in February, following RBI’s directive.
Completion of User Migration
Sharma announced that the migration of merchant customers from Paytm to the new Payment System Provider (PSP) bank handles has been successfully completed. This move came after the fintech company received approval from the National Payment Corporation of India (NPCI) to commence user migration.