Paytm crisis: Paytm parent One97 Communications, on Monday, confirmed reports of Paytm Payments Bank Limited independent director Manju Agarwal’s resignation from the board of the payments unit. Paytm cited “personal commitments” for Agarwal’s resignation.
“In reference to captioned subject, we hereby submit that our associate entity, Paytm Payments Bank Limited (PPBL), has informed us that Ms. Manju Agarwal, Independent Director resigned from the Board of PPBL on February 01, 2024, due to her personal commitments which was noted by PPBL Board on February 06, 2024. We hereby submit that PPBL is our associate entity and this event is not deemed material for the company and does not impact the operations/business of the company,” the filing said.
According to reports, Agarwal who was serving in the board since May 2021, resigned from the board with immediate effect on February 1. Her resignation came after RBI, on January 31, stopped the payments bank from onboarding new customers and ordered them to stop their key banking services from February 29.
Meanwhile, Paytm shares jumped 4 per cent in Monday\’s trade. Paytm stock rose 3.56 per cent to Rs 434.80 on BSE.
This jump in shares came after sources revealed to news agency PTI that the central government is examining foreign direct investment from China in Paytm Payments Services, the payment subsidiary of One97 Communications that has investment from Chinese firm Ant Group.
Moreover, the Paytm board has announced the formation of a group advisory committee, chaired by former SEBI Chairman M Damodaran, to work on strengthening compliance, and regulatory matters
Former president of Institute of Chartered Accountants of India (ICAI) MM Chitale, a former governing Council Member of Banking Codes and Standards Board of India nominated by RBI, banking experts like R Ramachandran, former Chairman and Managing Director of Andhra Bank, are part of the committee.
Also read: Centre examining FDI flow from China in Paytm Payments Services: Report
Also read: Paytm shares gain 4% on FDI clarification, formation of advisory committee