In a development signaling further turbulence for the embattled fintech giant Paytm, Surinder Chawla has tendered his resignation as the Chief Executive Officer of its banking arm, Paytm Payments Bank. Citing “personal reasons,” Chawla’s departure, effective from June 26, was confirmed by the company on Tuesday. However, Paytm refrained from disclosing any details regarding Chawla’s replacement, leaving stakeholders speculating on the future leadership of the banking entity.
In a recent regulatory filing, One97 Communications, the parent company of Paytm, revealed that Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank Limited (PPBL), has submitted his resignation effective April 8, 2024. Citing personal reasons and a quest for enhanced career prospects, Chawla is set to conclude his tenure at PPBL by the close of business hours on June 26, 2024, unless altered by mutual agreement.
Chawla’s departure occurs against the backdrop of regulatory challenges faced by Paytm Payments Bank, as it encounters restrictive measures from the Reserve Bank of India.
Chawla assumed the role of MD and CEO of Paytm Payments Bank in January 2023, subsequent to the RBI’s approval. Prior to his tenure at PPBL, Chawla held a significant position at RBL Bank, where he served as Head of Branch Banking. During his tenure, he focused on bolstering the Current Account Savings Account (CASA) base, generating fee revenue, and implementing cross-selling strategies across various channels.
Paytm’s founder and chairman, Vijay Shekhar Sharma, made headlines last month by stepping down from his position as part-time non-executive Chairman of Paytm Payments Bank Limited. This significant move prompted a notable reshuffle within the board, which now boasts experienced figures from the banking sector alongside retired Indian Administrative Service (IAS) officers.
The reconstituted board now comprises five independent directors, including an independent chairperson, underscoring the company’s commitment to governance and strategic direction.
“In continuation of our strategic endeavors, the company remains steadfast in its collaboration with banking partners to elevate our merchant acquiring and UPI services,” the filing mentioned.
In a noteworthy development for the digital payments ecosystem, the National Payments Corporation of India has granted approval to One97 Communications Ltd, backed by Paytm founder Vijay Shekhar Sharma, to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model. This approval is bolstered by the designation of Axis Bank, HDFC Bank, State Bank of India, and YES Bank as Payment System Provider (PSP) banks for Paytm, indicating a positive trajectory for the company’s payment services expansion.