Paytm Payments Bank's MD and CEO Surinder Chawla Resigns

Paytm Payments Bank's managing director and CEO, Surinder Chawla, has resigned from the company. Chawla will be discharged from his duty on June 26, 2024, unless there is a change via mutual consent. 

Chawla, who joined Paytm in January last year, resigned from the company citing personal reasons. His resignation comes at a time when the fintech platform has been facing a regulatory probe from the Reserve Bank of India (RBI). 

The regulatory filing says, “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 p.m. that Mr. 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. He will be relieved from PPBL w.e.f. the close of business hours on June 26, 2024, unless changed by mutual consent.” 

On January 31, the RBI imposed restrictions on Paytm Payments Bank, which became applicable on March 1. The restrictions were put in place by the central bank for "persistent non-compliance" with regulatory practices and KYC norms. Talking about the restrictions, in February 2024, RBI governor Shaktikanta Das said that the bank gave enough time to the fintech regulator to comply with the norms. 

In a press conference after the RBI MPC meet, Das said, “Sometimes it is more than sufficient time. We are a responsible regulator. If everything is complied with, why should we act?”  Since the Paytm fiasco, there have been several resignations in the company. Praveen Sharma, SVP, Business of the Company, also resigned in March this year. He was relieved of his service on March 31, 2024. In his resignation letter, Sharma mentioned that he wanted to pursue other options. 

Similarly, two independent directors, Manju Agarwal and Shinjini Kumar, left the company in February after the RBI imposed the regulation. Paytm CEO Vijay Shekhar Sharma also stepped down on February 26, 2024, from the Paytm Payments Bank board.