Paytm stated Monday that Manju Agarwal, an independent director at its banking affiliate Paytm Payments Bank Limited (PPBL), has resigned, citing ‘personal responsibilities’ in a regulatory filing.
“We hereby submit that our associate entity, PPBL, has informed us that Manju Agarwal, Independent Director, resigned from its Board on February 1, 2024, due to her personal commitments which were noted by the PPBL board on February 6, 2024,” the Noida-based fintech giant said in its filing.
“We hereby submit that PPBL is our associate entity and this event (the resignation) is not deemed material for the company and does not impact our operations/business, as per the provisions of SEBI’s Regulation 30.” the company added.
The resignation follows after the Paytm Payments Bank was subjected to significant business limitations on January 31 by the Reserve Bank of India (RBI). These limits included a prohibition on new deposits and credit transactions after February 29. The bank’s “persistent non-compliances,” according to the RBI, were what sparked the raid.
Recent Development in the Paytm Case
A three-member group advisory committee led by former Sebi Chairman M Damodaran has been established by the board of One 97 Communications Ltd, the company that owns the Paytm brand, to assist the board in enhancing compliance and regulatory concerns.
The panel will collaborate closely with the board, and more members will be inducted as needed.
The other committee members will be Mukund Manohar Chitale, former president of the Institute of Chartered Accountants of India (ICAI), former chairman of the National Advisory Committee on Accounting Standards (NACAS), a former governing council member of the Banking Codes and Standards Board of India nominated by the RBI, and a member of the Primary Advisory Market Committee of Sebi, and Ramachandran Rajaraman, former chairman and MD of Andhra Bank, a former director of Syndicate Bank and a member of the advisory board at the Central Vigilance Commission.
The action was conducted owing to noncompliance with multiple regulatory rules, including those relating to know-your-customer (KYC) and failure to maintain a Chinese wall with the group firm, One97 Communications.
Who is Manju Agarwal?
Manju Agarwal worked for the State Bank of India (SBI) for over 34 years, holding several positions such as General Manager (Network), Chief General Manager (Rural Business), and Deputy Managing Director & Chief Operating Officer (COO).
Her final role at the country’s largest lender was as Deputy Managing Director, Digital Banking and New Businesses. She also conceptualised and implemented YONO, SBI’s digital banking platform, and oversaw the company’s cooperation with Reliance Industries Limited (RIL) to establish Jio Payments Bank Limited.
Agarwal is now an independent director for numerous companies, including Polycab India, Gulf Oil, Hinduja Leyland Finance, and others. She formerly worked in the same role at Jio Payments Bank (November 2016–December 2019) and IFFCO Kisan Finance Limited (September 2019–March 2023).
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