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Vijay Shekhar Sharma is stepping down as part-time non-executive chairman and board member at Paytm Payments Bank as part of a restructuring. This and more in todays ETtech Morning Dispatch.
At a time when the role of corporate boards is once again under the scanner, independent directors on the Paytm Payments Bank board have indicated that red flags were raised over regulatory issues but they may have been late in doing so. 'As independent directors, we asked questions and monitored responses to the Reserve Bank of India (RBI). Many changes were made on compliances. 'Obviously, in retrospect, it was not found to be enough,' said one of the independent directors on the condition of anonymity.
Paytm founder Vijay Shekhar Sharma wanted to remove ‘Paytm from its name to quell mounting regulatory and compliance pressures on the fintech firm. However, did not carry out his plan and remains on the board of Paytm Payments Bank.
The proposal, however, was not formally presented nor sent to the regulator. Sharma is a 51% owner of the payments bank while the rest is held by One 97 Communications – the parent of Paytm brand and the app.
Learn about Vijay Shekhar Sharma's plan to remove 'Paytm' from Paytm Payments Bank to address regulatory and compliance pressures. Find out why the proposal was not formally presented and why Sharma remained on the board.