Paytm Payments Bank MD, CEO Surinder Chawla resigns

The exit follows the stepping down of Paytm's top boss Vijay Shekhar Sharma as non-executive chairman of Paytm Payments Bank.

Updated on: Apr 9, 2024, 18:25:09 IST

By HT News Desk

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Beleaguered fintech company Paytm on Tuesday announced that Surinder Chawla has resigned as the chief executive officer of its banking unit Paytm Payments Bank "on account of personal reasons". The company said the resignation would be effective from June 26, without divulging any information on the potential successor to Chawla.

"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. close of business hours on June 26, 2024, unless changed by mutual consent," One97 Communications, Paytm brand owner, said in a regulatory filing.

Chawla's resignation comes amid Paytm Payments Bank facing prohibitory action from the Reserve Bank of India.

Read: Paytm's Vijay Shekhar Sharma on RBI action: ‘In my lifetime, I would like…’

Chawla was appointed as MD and CEO of the payments bank in January 2023 after the company received a nod from the RBI. Before joining PPBL, Chawla was working with RBL Bank, where he served as Head - Branch Banking and focused on expanding the CASA base, fee revenue, and cross-selling across channels.

Paytm founder chairman Vijay Shekhar Sharma last month stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited, leading to a reconstitution of the board with experienced figures from the banking sector and retired Indian Administrative Service (IAS) officers.

Read: Paytm founder Vijay Shekhar Sharma-backed Pai Platforms launches shopping app

The bank's board now comprises five independent directors, including an independent chairperson.

"In line with our ongoing efforts, the company continues to collaborate with banking partners to enhance our merchant acquiring and UPI services," the filing said.

As a relief to the digital payments firm, the National Payments Corporation of India has granted One97 Communications Ltd approval to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model. Axis Bank, HDFC Bank, State Bank of India, and YES Bank have been designated as Payment System Provider (PSP) banks for Paytm.

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