Surendra Chawla, CEO of Paytm Payments Bank, has resigned.

Upset of Paytm Payment Bank Managing director and CEO Surendra Chawla has resigned from the company, a regulatory filing said on Tuesday.

Chawla’s resignation comes at a time when Paytm Payments Bank is facing prohibitive action from the banking regulator. RBI.

“Surendra Chawla, Managing Director and CEO of PPBL has tendered his resignation on April 8, 2024 to pursue personal reasons and better career prospects. He will join PPBL at close of business hours on June 26, 2024. will be terminated, unless changed by mutual consent,” One97 Communications, owner of the Paytm brand, said in a regulatory filing.

Chawla joined PPBL in January last year after the payments bank received approval from the Reserve Bank of India.

In a major crackdown on Paytm Payments Bank (PPBL), the RBI on January 31 directed it to freeze deposits in any customer accounts, wallets, fast tags and other devices after February 29. Or stop accepting top-ups. March 15.

The central bank said in a statement that the directive follows concerns of continued non-compliance and continued material oversight.

On 11 March 2022, RBI barred PPBL from adding new customers with immediate effect.

Following regulatory actions, promoter Vijay Shekhar Sharma resigned as part-time non-executive chairman of Paytm Payments Bank Limited last month, and the bank’s board was reconstituted.

Former Central Bank of India Chairman Srinivasan Sridhar, former Bank of Baroda Executive Director Ashok Kumar Garg, and two retired Indian Administrative Service (IAS) officers were inducted into the bank’s board.

One97 Communications Limited (OCL) holds 49% stake in PPBL.

Paytm said in a disclosure dated March 1, 2024, almost all agreements between the company and PPBL have been terminated, and PPBL’s board has been reconstituted with five independent directors, including an independent chairperson. , and no one has been nominated by the company. Revealed on February 26, 2024.

“In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services,” the filing said.

The National Payments Corporation of India on Thursday approved One97 Communications Ltd to participate in UPI as a Third Party Application Provider (TPAP) under the multi-bank model.

Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will act as payment system provider (PSP) banks to Paytm.

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