India’s Paytm Payments Bank board is independent and capable of resolving regulatory issues, the CEO of digital payments company Paytm, formally known as One97 Communications Ltd (OCL), said on Monday.
“Neither I personally nor anyone at OCL has any connection with the payments bank,” Vijay Shekhar Sharma said in the webinar.
“We have an independent board of directors that manages everything and we have full confidence in their abilities.”
In late January, the Reserve Bank of India (RBI) ordered Paytm Payments Bank to stop accepting new deposits into its accounts or digital wallets from March, citing supervisory concerns and ongoing non-compliance with regulations.
Paytm Payments Bank’s parent company is One 97 Communications, popularly known as Paytm, a digital payments app.
One97 owns 49% stake in the payments bank, while Sharma holds the remaining 51%.
Following RBI’s order in February, Sharma stepped down as non-executive chairman and director of Paytm Payments Bank.
Last month, Paytm was granted a third-party application provider license by the national payments authority, which will enable it to facilitate payments even after the banking sector ceases operations.
This license will allow customers to continue using Paytm apps for payments through India’s popular Unified Payments Interface (UPI) even after Paytm Payments Bank suspended operations till March 15 following regulatory action for non-compliance with certain norms. can.
Axis Bank, HDFC Bank, State Bank of India and Yes Bank said in a statement at the time that National Payments Corporation of India (NPCI) will act as the payment system provider bank for Paytm.
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