Paytm said on Monday that Vijay Shekhar Sharma would step down as non-executive chairman and board member of its payments bank's unit, as the embattled digital payments company overhauls its board after a central bank clampdown.
The action against Paytm Payments Bank followed "serious supervisory concerns", including inadequate customer identify and a lack of arms-length distance with Paytm, sources had told Reuters.
The Reserve Bank of India has asked the banking unit to wind down its operations by March 15 due to persistent non-compliance and continued material supervisory concerns, triggering a meltdown in Paytm's stock.
Srinivasan Sridhar, former chairman of state-owned Central Bank of India, former Bank of Baroda Executive Director Ashok Kumar Garg and two retired Indian Administrative Service officers will join the board, Paytm said in an exchange filing.
The new board members' expertise will be "pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices", Paytm Payments Bank CEO Surinder Chawla said.
Paytm supports its banking unit's move of opting for a board with only independent and executive directors by removing its nominee, it said, adding Sharma was also stepping down from the board to "enable the transition".
Mr Sharma owns a 51 per cent stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Paytm's Vijay Shekhar Sharma Deletes Post On Ratan Tata After Internet Calls It Disrespectful SEBI Pulls Up Paytm Founder, Director on IPO Breaches: Report SEBI Notice To Paytm On 2.1 Crore Employee Stock Options To CEO, Firm Says... Naval Personnel Among 13 Killed As Navy Boat Collides With Ferry Near Mumbai Video: Moments Before Navy Boat Collided With Ferry Near Mumbai Video: Goa Airbnb Owner Shares Horrifying Experience With Guests "Both Ordinary And Extraordinary": France's Pelicot Rape Trial Pelicot Rape Trial Shifts France's Practices Around Drug-Facilitated Assaults US Reports First Severe Infection Of Bird Flu In A Human Track Latest News Live on NDTV.com and get news updates from India and around the world.