Paytm has become hugely popular as the digital transactions in India took over the traditional cash based transactions. Demonetisation has made Indians look towards using UPI payment apps and Paytm became a pioneer in this field in India. With growing popularity, Paytm has launched Paytm Payments Bank, PPBL and now, RBI has decided to ban the operations of the bank.
Customers cannot use the bank’s wallet, savings account and debit cards to transact from 15th March. RBI has extended the deadline from 29th February to 15th March to give the bank time shift their UPI transaction partner from PPBL to other banks. To make this transaction smooth, founder Vijay Shekhar Sharma has decided to step down as chairman of PPBL board.
He will also be not part of the board any longer. PPBL has also start reconstituting their Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal.
One97 Communications has informed about the same in their regulatory meeting. They have announced the process of appointing a new Chairman will start and further they want to go to RBI stating that they will be no longer found “guilty under non-compliance”. We have to wait and see, how new board will operate PPBL further.