Resignation of MD-CEO of Paytm Payments Bank: Surinder Chawla resigns for better career, company will relieve him on June 26

Resignation of MD-CEO of Paytm Payments Bank: Surinder Chawla resigns for better career, company will relieve him on June 26

Paytm Payments Bank Limited (PPBL) Managing Director and CEO Surinder Chawla has resigned from his post. PPBL parent company One97 Communications said in an exchange filing that Chawla has tendered his resignation with effect from April 8, 2024, for personal reasons and to pursue a better career. The company said that if there is no change through mutual consent, then he will be relieved from PPBL after the end of business hours on June 26, 2024. All agreements between Paytm and Paytm Payments Bank have been terminated. One97 Communications said that as reported earlier, almost all agreements between the company and Paytm Payments Bank have been terminated. On March 1, 2024, the board of PPBL has reorganized with 5 independent directors. Deposits stopped in Paytm Payments Bank after March 15. Chawla’s resignation has come at a time when the Reserve Bank of India i.e. RBI has imposed major business restrictions on Paytm Payments Bank, citing long-term non-compliance with prudential regulations. Restrictions have been imposed. RBI had found major irregularities in Paytm’s KYC, due to which customers were in serious risk. Paytm did not do KYC of millions of customers. PAN validation of lakhs of accounts was not done. Single PAN was being used for multiple customers. On many occasions, wrong information was also given by the bank to RBI. RBI had also found a large number of inactive accounts. While issuing a circular on January 31, RBI had said that after February 29, money cannot be deposited in the account of Paytm Payment Bank. After this RBI extended this deadline till 15 March. Deposits in Paytm Payments Bank have stopped after March 15. Paytm Payments Bank fined ₹5.49 crore A month ago, the Financial Intelligence Unit-India (FIU-IND) had imposed a fine of ₹5.49 crore on Paytm Payments Bank Limited. This action was taken for violating money laundering rules. FIU-IND had taken this decision after reviewing the actions of other agencies including the Reserve Bank.

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