- Paytm Payments Bank’s independent director, Manju Agarwal, resigns following RBI’s regulatory action.
- RBI halts onboarding of new customers and key banking services, prompting Agarwal’s immediate resignation.
- Paytm founder Vijay Shekhar Sharma meets RBI officials to discuss regulatory concerns and seeks extension of deadline.
Amidst regulatory turbulence, Paytm Payments Bank witnesses the resignation of its independent director, Manju Agarwal, in the wake of the Reserve Bank of India’s (RBI’s) recent regulatory action. Following RBI’s directive to halt onboarding new customers and certain key banking services from February 29, Agarwal reportedly stepped down from the board on February 1. The move comes as part of RBI’s efforts to ensure compliance and minimize customer inconvenience, with Governor Shaktikanta Das emphasizing the regulator’s commitment to constructive engagement before resorting to supervisory action.
In response to the regulatory scrutiny, Paytm founder Vijay Shekhar Sharma engages in discussions with RBI officials to address the concerns raised by the regulatory action. Seeking clarity on regulatory compliance and exploring avenues for resolution, Sharma reportedly advocates for an extension of the February 29 deadline. However, despite the meetings, no concrete resolution or forward progress is reached, leaving uncertainties looming over the company’s future trajectory amidst the regulatory challenges.
Following the RBI’s Monetary Policy Committee meeting, Paytm shares plummeted by 10%, reflecting the market’s response to the regulatory turmoil. With more than a 41% decline in value since the onset of regulatory action in February, Paytm faces heightened volatility and scrutiny in navigating the evolving regulatory landscape, while stakeholders closely monitor developments for potential impacts on the company’s operations and market performance.
