Independent director of Paytm Payments Bank resigns amid ongoing crisis

Shares of Paytm declined 10 per cent to hit lower circuit limit on Thursday

A vendor weighs vegetable next to an advertisement of Paytm hanging amidst his vegetables at a roadside market in Mumbai

In what comes as another setback to One97 Communications Ltd, which owns the Paytm brand, Manju Agarwal, an independent director at Paytm Payments Bank Limited (PPBL) resigned from its board amid the ongoing crisis.

According to a CNBC-TV18 report, Agarwal, who was on the PPBL board since May 2021, resigned from the board with effect from February 1, 2024.

Meanwhile, shares of Paytm declined 10 per cent to hit lower circuit limit on Thursday, after a two-day rally despite the assurance from Reserve Bank of India Governor Shaktikanta Das that there are no systemic worries and the action on Paytm was driven by a "lack of compliance" at Paytm.

"There is no worry about the system at the moment. Here we are talking about a specific institution, a specific payment bank," Das said.

Deputy Governor Swaminathan J. said the January 31 action against Paytm Payments Bank, was the culmination of a long series of bilateral engagement.

"This is a supervisory action on a regulated entity for persistent non-compliance. Such supervisory actions are invariably preceded by months and at times years of bilateral engagement, where we not only point out deficiencies but also provide more than adequate time for them to take corrective action," he said.

On January 31, the RBI ordered Paytm Payments Bank Ltd to not take any further deposits, conduct credit transactions or carry out top-ups on any customer accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.


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