In a bid to address mounting regulatory and compliance challenges faced by Paytm, Vijay Shekhar Sharma, the founder and part-time chairman of Paytm Payments Bank, reportedly considered resigning from the bank's board and even contemplated removing 'Paytm' from its name. These discussions took place last year amidst increasing inquiries from the Reserve Bank of India (RBI), with a formal order issued on January 31.
Sharma's deliberations, which occurred late last year, were prompted by concerns raised by the Reserve Bank of India (RBI) regarding compliance issues. Discussions included the possibility of removing 'Paytm' from the bank's name to establish greater separation between the bank and the Paytm app, a move suggested earlier by the RBI in relation to Paytm Mall's integration within the main app.
Although the proposal was discussed at the board level, it was not formally presented or submitted to the regulator. The reasons behind this decision remain unclear. A spokesperson for Paytm Payments Bank Limited declined to comment, citing the bank's ongoing engagement with the regulator.
Sharma, who owns a 51% stake in the payments bank, ultimately retained his position on the board. Meanwhile, Shinjini Kumar, a former executive at Bank of America and PricewaterhouseCoopers (PwC), resigned from her position in December. Her resignation has been accepted, and efforts are underway to finalize her replacement. However, Kumar continued to attend board meetings as a special invitee to fulfill RBI's requirements for independent directors.