Paytm Payments Bank's MD and CEO Surinder Chawla resigns

Paytm Payments Bank's Managing Director and CEO Surinder Chawla has offered to resign from his position, the company said in a stock exchange filing on April 8. As per the company, Chawla resigned citing personal reasons and to explore better career prospects. He will be relieved from PPBL on June 26, the company said.

“The company would like to update that it has been informed by its associate entity, Paytm Payments Bank Limited (PPBL) on April 8, 2024, at 5.23 pm, that Surinder Chawla, managing director and CEO of PPBL has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects,” One97 Communication, the owner of Paytm, said in a BSE filing on Tuesday.

The company further stated that nearly all agreements between the company and PPBL have been terminated as per our disclosure on March 1, 2024, and the board of PPBL has been reconstituted with five independent directors including an Independent Chairperson, and no nominees from the Company, as per the company's disclosure 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 company noted.

Chawla had joined the One 97 Communications bank on January 9, 2023. Before that, he was with RBL Bank as the head of branch banking. He has almost three decades of experience in the banking sector. He has worked at HDFC Bank, Standard Chartered Bank and others.

The Reserve Bank of India in January this year imposed a ban on the bank from operating its services such as deposits, credit transactions, and FASTag recharges from February 29.

Later, it extended the last date to March 15. Following this, Paytm Payments Bank could not accept deposits or top-ups in customer accounts, wallets, FASTags, and other instruments.

The central bank cited non-compliance of regulations and supervisory issues as reasons for the decision.

One 97 Communications, which had 49% stake in the bank, has been trying to re-establish its business through other lenders. Currently, Paytm operates as a third party payment application on Unified Payments Interface (UPI), just like PhonePe and Google Pay. It works with Yes Bank, HDFC Bank, State Bank of India and Axis Bank for this service.