Vijay Shekhar Sharma, the founder and CEO of Paytm, has stepped down as the chairman of Paytm Payments Bank. He announced his decision on Monday, February 26, 2024, in a letter to the board and employees of the bank. He said he wanted to focus on his role as the CEO of One97 Communications, the parent company of Paytm. The move comes as Surinder Chawla steps in to assume the responsibilities left by Sharma’s departure.
Why did Vijay Shekhar Sharma Resign as Paytm Payments Bank Chairman?
Sharma’s resignation comes at a time when Paytm Payments Bank is facing regulatory challenges from the Reserve Bank of India (RBI). The RBI has imposed several restrictions on the bank, such as:
- Limiting the deposits and credits from customers to Rs 1 lakh per account.
- Prohibiting the bank from issuing new debit cards and opening new accounts.
- Asking the bank to remove the term “bank” from its name and logo.
The RBI has also asked the bank to submit a compliance report by March 31, 2024, failing which it may face further action. Sharma said he was confident that the bank would overcome these hurdles and become a leading player in the digital payments space.
Who is Vijay Shekhar Sharma?
Vijay Shekhar Sharma is one of the most successful entrepreneurs in India. He founded Paytm in 2010 as a mobile recharge platform. Since then, he has transformed it into a digital payments giant, offering services such as mobile wallets, e-commerce, insurance, lending, and wealth management. Paytm has over 450 million users and is valued at $16 billion.
Sharma is also known for his vision and innovation. He was the first to launch a QR code-based payment system in India, which enabled millions of small merchants and customers to transact digitally. He also pioneered the concept of “Paytm karo”, which means “do Paytm”, to popularize the brand and the habit of using digital payments.
Impact of Sharma’s Resignation
Sharma’s resignation as the chairman of Paytm Payments Bank will have a significant impact on the bank and its future. The bank will have to undergo a major overhaul of its board and management, as Sharma was the main driving force behind its strategy and growth. The bank will also have to appoint a new chairman, who will have to work closely with the RBI and other stakeholders to resolve the compliance issues and restore the trust of the customers.
Sharma’s resignation may also affect the future business plans of Paytm and One97 Communications. Sharma has been vocal about his ambition to take Paytm public and make it a global leader in digital payments. He has also expressed his interest in entering new domains such as gaming, education, and healthcare. However, with his departure from the bank, he may have to rethink his priorities and focus more on the core business of Paytm. He may also have to deal with the competition from other players such as Google Pay, PhonePe, and WhatsApp Pay, who are vying for a share of the lucrative Indian digital payments market.
