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Vijay Shekhar Sharma has stepped down from his position as part-time non-executive chairman and board member of Paytm Payments Bank Limited (PPBL), as per a filing on the BSE by One97 Communications Ltd (OCL).

The company also announced that it has reconstituted its board of directors with the appointment of former Central Bank of India chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal. They had recently joined the board as independent directors, the company added.

“OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee… PPBL has informed us that they will commence the process of appointing a new chairman,” it added in the disclosure [pdf].

The move comes weeks after the Reserve Bank of India (RBI) imposed a set of business restrictions on Paytm Payments Bank over non-compliance and regulatory concerns. The business restrictions are set to impact Paytm’s different business verticals related to the payments bank. 

Also Read: RBI’s additional steps aim to protect ‘@paytm’ users, merchants

Since then, the central bank has made a few additional steps to safeguard affected customers’ interests, including granting temporary relaxations on the restrictions. The RBI has extended the earlier stipulated timeline from February 29, 2024, to March 15, 2024, for further deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. The same timeline extension has been given to banking services such as fund transfers, BBPOU, and UPI facilities.

Recently, RBI deputy governor Swaminathan J clarified that the crackdown on Paytm’s payments bank was not sudden but followed several conversations and giving the company ample time to take corrective measures.

“When constructive engagement doesn’t work or when the regulated entity does not take effective action, we go for imposing business restrictions,” Das was quoted as saying.