Manju Agarwal, Independent Director of Paytm Payments Bank, Resigns from Board Following RBI Intervention

Resignation Comes in the Wake of Regulatory Measures by the Reserve Bank of India.

Paytm Payments Bank's independent director Manju Agarwal resigned from the board following RBI restrictions on PPBL, reported CNBC TV 18. The resignation came into effect on February 1, 2024.

Manju Agarwal has also served as the Deputy Managing Director at SBI and has been a part of the PPBL board since May 2021.

There has been no official confirmation by the fintech on the matter. The development has come after the Reserve Bank of India directed the lender to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29.

On Thursday, RBI Deputy Governor Swaminathan J also clarified that the RBI action was taken against Paytm Payments Bank and not on the Paytm App. 

"Just one clarification, this particular action is against Paytm Payments Bank and is not to be confused with Paytm App...The app is not impacted by this action," RBI Deputy Governor Swaminathan J said in the media interaction after the bi-monthly Monetary Policy Committee (MPC) meeting.

In an affirmative response to the question about other banks partnering with Paytm wallet, Swaminathan J said that it is a business decision and the banks have to carry out required due diligence as per their board-approved policy. "I am sure they will carry out due diligence if they have got to do a partnership," he said.

Commenting on RBI's clarification, a Paytm spokesperson said, "We assure our users and merchant partners that the Paytm app remains fully operational, and our services are unaffected."

A few days ago Paytm CEO Vijay Shekhar Sharma met RBI officials and Finance Minister Nirmala Sitharaman to discuss regulatory concerns related to PPBL. The meeting brought the much-needed confidence boost of investors in Paytm's parent firm, One97 Communications. After three days of the crash, One97 Communications shares regained some strength on Tuesday and Wednesday. However, the company shares tanked 9.41% to ₹450 on the BSE Thursday, February 8. The company stock fell by 9.31% to ₹450 per share on the NSE.

Paytm Payments Bank Ltd (PPBL) is an associate of One97 Communications Ltd. The company owns 49% of the paid-up share capital of PPBL, whereas Paytm founder Vijay Shekhar Sharma has a 51% stake in PPBL.