Vijay Shekhar Sharma, the founder and CEO of Paytm, has resigned from his position as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL) amid RBI’s clampdown on the fintech firm over compliance issues.
Due to persistent non-compliance and ongoing material supervisory concerns, the Reserve Bank of India has prohibited PPBL from accepting deposits and credits from any customer after March 15.
Why did he step down?
One 97 Communications Ltd (OCL), the parent company of the fintech brand Paytm, announced on Monday that its associate bank, Paytm Payments Bank Limited, has restructured its Board of Directors.
According to a regulatory filing on Monday, the new Board of Directors includes Srinivasan Sridhar, former Chairman of Central Bank of India; Debendranath Sarangi, retired IAS officer; Ashok Kumar Garg, former Executive Director of Bank of Baroda; and Rajni Sekhri Sibal, former IAS officer.
On January 31, the Reserve Bank of India (RBI) imposed significant business restrictions on PPBL, such as a prohibition on accepting fresh deposits and conducting credit transactions after February 29. This deadline was later extended to March 15 on February 16.
Who is Vijay Shekhar Sharma?
-Vijay Shekhar Sharma is the founder and CEO of One97 Communications and its consumer brand Paytm. He has transformed Paytm into India’s leading mobile-first financial services conglomerate in a relatively short timeframe.
-Born in 1978 in Aligarh, Uttar Pradesh, Vijay Shekhar Sharma completed his B.Tech from Delhi College of Engineering, now known as Delhi Technological University, in 1998.
-Sharma established the mobile wallet Paytm in 2011. An abbreviation for “pay through mobile,” Paytm witnessed exponential growth following India’s 2016 demonetisation as it boasted 400 million users and processed 25 million transactions daily, according to a Forbes report.
-Recognised for his environmental advocacy, Vijay Shekhar Sharma was appointed United Nations Environment’s Patron for Clean Air in 2017. He actively supported the UN Environment’s #BreatheLife campaign, advocating for environmental action and awareness.
-Sharma attracted attention in August 2018 by securing a $300 million investment from Warren Buffett’s Berkshire Hathaway for Paytm. Additionally, he launched Paytm Mall, an e-commerce venture, and established the Paytm Payments Bank.
-In 2019, Sharma introduced Paytm Payments Bank with the goal of providing banking and financial services to 500 million underserved Indian customers.
-According to Forbes 2022 Billionaires Net Worth, Sharma’s net worth stands at $1.2 billion. Despite a decline from its 2019 peak, Sharma was featured in Forbes’ 2022 list as a billionaire.