Paytm Banking Unit CEO Surinder Chawla resigns for “Personal Reasons

Paytm’s shares have experienced a significant decline, nearly 50%, following the Reserve Bank of India’s order against its banking unit. This decision is a result of persistent compliance issues and supervisory concerns. This move led to the exit of Paytm’s top boss, Vijay Shekhar Sharma, from his role as non-executive chairman of Paytm Payments Bank. Additionally, there was a major board overhaul in response to the central bank clampdown on the digital payments firm’s banking unit.

The RBI mandated that Paytm Payments Bank wind down its operations by March 15, further impacting Paytm’s stock and causing a meltdown. As part of an effort to distance itself from the troubled banking unit, Paytm, previously known as One 97 Communications, and its banking unit mutually agreed to terminate various inter-company agreements. Despite these challenges, India’s payments authority granted a third-party app license to Paytm, allowing it to continue facilitating payments after its banking unit ceased operations. To alleviate some of the difficulties faced by the digital payments firm, several banks, including Axis Bank, HDFC Bank, State Bank of India, and Yes Bank, are acting as payment system provider banks to Paytm.

Paytm’s shares are down nearly 50% since the RBI’s order against its banking unit, and they settled 2% lower on a recent Tuesday. *(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed. )*