Manju Agarwal, an independent director of Paytm Payments Bank, resigned from the board following the Reserve Bank of India’s action. According to a PTI report, Agarwal tendered her resignation from the board, effective February 1. This decision comes after the central bank barred Paytm Payments Bank from accepting new deposits or top-ups in customer accounts, wallets, FASTags, or other instruments starting February 29.
Paytm Payments Bank, an associate of One97 Communications Limited, which holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL, faces regulatory scrutiny.
RBI Takes Action Against Paytm Payments Bank for Non-Compliance
On Thursday, the central bank announced that it had taken action against Payments Bank due to ‘persistent non-compliance’.
RBI governor Shaktikanta Das emphasized,
“Our focus is always on engaging directly with the regulated entities to encourage corrective action. Adequate time is provided for implementing such corrective measures. If constructive engagement fails or if the regulated entity fails to take effective action, we impose supervisory or business restrictions.”
Paytm Founder Vijay Shekhar Sharma Meets RBI and Finance Minister
Days before the RBI statement, Paytm founder and CEO Vijay Shekhar Sharma met RBI and Finance Minister Nirmala Sitharaman. Reports indicate that the central bank declined to grant concessions to the payments gateway, including extending the February 29 deadline.
During his meeting with Sitharaman, the minister informed Sharma that the action against Paytm Payments Bank is a regulatory issue, and the government cannot assist the company.
Manju Agarwal Background and Departure from PPBL
Manju Agarwal, who previously served as the Deputy Managing Director at SBI, joined the PPBL board in May 2021. However, there has been no official confirmation from the fintech regarding her resignation. The development follows the Reserve Bank of India’s directive to the lender to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29.