Paytm’s Vijay Shekhar Sharma discussed exiting board, removing Paytm from bank name
Vijay Shekhar Sharma, founder of Paytm and part-time chairman of Paytm Payments Bank, considered resigning from the latter’s board and removing ‘Paytm’ from its name to quell mounting regulatory and compliance pressures on the fintech firm, said people aware of the matter.
Sharma, however, did not carry out his plan and remains on the board of Paytm Payments Bank.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitThe discussions took place late last year against the backdrop of queries from the Reserve Bank of India (RBI) on compliance concerns, culminating in an order on January 31.
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They assume significance given the issue has been a bone of contention for several other banks as well where the regulator has sent directives on management and board changes.
“There was a discussion at the board level for him to step back amid rising queries from the regulator. The show cause notice on compliance issue was expected around December,” a person aware of the matter said. “There was an idea that they should remove Paytm to maintain arm’s length distance between the bank and the Paytm app. This was something that was flagged by RBI earlier also with regards to Paytm Mall – ecommerce – being there on the main app,” this person said.
It is not clear why the proposal was not formally presented before the board
