Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
Surinder Chawla, the Chief Executive Officer and Managing Director of Paytm’s banking unit, Paytm Payments Bank, has tendered his resignation citing “personal reasons.” The company announced that Chawla’s resignation would take effect from June 26. However, no details were provided regarding a potential successor to Chawla.
This development comes in the wake of significant changes within Paytm, including the stepping down of Vijay Shekhar Sharma as non-executive chairman of Paytm Payments Bank. These changes followed a regulatory crackdown by the Reserve Bank of India (RBI) on compliance issues and supervisory concerns related to Paytm’s banking operations. As a result, RBI directed Paytm Payments Bank to wind down its operations by March 15.
In response to regulatory pressure, Paytm has been restructuring its operations, including ending various inter-company agreements associated with its troubled banking unit. Despite these challenges, Paytm secured a third-party app license from India’s payments authority, allowing it to continue facilitating payments even after the banking unit ceased operations.
Paytm collaborates with several leading banks in India, including Axis Bank, HDFC Bank, State Bank of India, and Yes Bank, for payment system services. This collaboration ensures continuity in Paytm’s payment services despite the setbacks faced by its banking unit.
The news of Chawla’s resignation and the broader challenges faced by Paytm have impacted the company’s stock performance, with shares dropping nearly 50% since the RBI’s directive against its banking operations. On Tuesday, Paytm’s shares settled 2% lower, reflecting ongoing market concerns amid regulatory pressures and organizational changes within the company.
Sources By Agencies
