In a significant development, Manju Agarwal, an independent director at Paytm Payments Bank (PPBL), has resigned from the board, effective from February 1. This move follows the recent action taken by the Reserve Bank of India (RBI), which barred the bank from accepting new deposits or top-ups in various financial instruments from February 29.
Agarwal’s resignation comes in the wake of the central bank’s announcement of restrictions on Paytm Payments Bank due to ‘persistent non-compliance.’ The RBI has emphasized its commitment to engaging with regulated entities for corrective actions, providing ample time for compliance. However, when such constructive engagement fails, the RBI resorts to imposing supervisory or business restrictions, as stated by RBI governor Shaktikanta Das.
Notably, Paytm Payments Bank is an associate of One97 Communications Limited, holding 49% of the paid-up share capital directly and through its subsidiary. The remaining 51% stake is owned by the bank’s CEO, Vijay Shekhar Sharma.
Before the RBI’s action, Vijay Shekhar Sharma, the founder and CEO of Paytm, had meetings with both the RBI and Finance Minister Nirmala Sitharaman. Despite these discussions, the central bank declined to grant concessions to Paytm Payments Bank, including an extension of the February 29 deadline.
During the meeting with Sitharaman, Sharma was informed that the regulatory actions against Paytm Payments Bank are beyond the government’s intervention, labeling it as a regulatory issue. The government clarified its inability to provide assistance to the company in this matter.
The developments surrounding Paytm Payments Bank highlight the challenges faced by financial institutions in maintaining regulatory compliance and the complex interactions between regulatory bodies and the entities they oversee. As the situation unfolds, stakeholders will be closely watching for further developments and actions from both Paytm and regulatory authorities.
Also read: https://newseense.com/rbi-maintains-status-quo-keeps-key-policy-rate-unchanged-at-6-5-percent/
- BJP President JP Nadda Issues Notice to Dilip Ghosh Over Controversial Remarks on Mamata Banerjee
- Ram Charan and Kiara Advani’s ‘Jaragandi’ Song from Game Changer Released
- Pre-Match Banter: Rohit Sharma’s Flying Kiss Recreation Adds Spice to MI vs SRH Clash
- Swami Smaranananda Maharaj, President of Ramakrishna Math and Ramakrishna Mission, Passes Away at 95
- Stand-up Comedian Munawar Faruqui Breaks Silence on Social Media After Mumbai Police Detention
One Comment