Paytm Payments Bank MD & CEO Surinder Chawla Resigns

One 97 Communications Ltd. said its associate entity Paytm Payments Bank Ltd.’s (PPBL) Managing Director and Chief Executive Officer Surinder Chawla resigned.

Chawla tendered his resignation on 8 April on account of personal reasons and to explore better career prospects, the Indian mobile payments and financial services distribution company said in a stock exchange announcement today.

The company, which owns and operates digital payment app Paytm, said Chawla will be relieved from PPBL with effect from close of business hours on 26 June, unless changed by mutual consent. It didn’t disclose the details about his successor.

In March, One 97 and PPBL mutually agreed to discontinue various inter-company agreements to pursue independent future plans as part of the process to reduce dependencies.

The development came as the Reserve Bank of India (RBI) took action against PPBL over persistent non-compliances and continued material supervisory concerns in the bank. The RBI had said PPBL cannot accept further credits into its customer accounts and wallets after 15 March other than any interest, cashbacks, sweep in from partner banks or refunds, which may be credited anytime.

Following the RBI’s action, PPBL reconstituted its board and Vijay Shekhar Sharma, the founder of One 97, resigned as part-time non-executive chairman of the bank.

One 97 today said the company continues to collaborate with banking partners to enhance its merchant acquiring and UPI services.

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