Paytm Payments Bank: Manju Agarwal quits Paytm Payments Bank board

One 97 Communications, the entity that operates Paytm, on Monday informed the exchanges that independent director Manju Agarwal has resigned from its associate company, Paytm Payments Bank (PPBL).

As part of its exchange filing, One 97 said Agarwal resigned from the payments bank on February 1, citing personal commitments, which was noted by the bank’s board on February 6. Agarwal was earlier a deputy managing director at State Bank of India.

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“We hereby submit that our associate entity, Paytm Payments Bank Limited, has informed us that Manju Agarwal, independent director, resigned from the board of PPBL on February 01, 2024, due to her personal commitments which was noted by PPBL board on February 06, 2024,” the exchange filing read.

“We hereby submit that PPBL is our associate entity and this event is not deemed material for the company (One 97) and does not impact the operations or business of the company,” it added.

Agarwal’s resignation underscores the mounting troubles at PPBL, as two of its five independent directors have resigned from the bank’s board in recent times.

ET reported on February 9 that Shinjini Kumar, a former Bank of America and PricewaterhouseCoopers (PwC) executive, also resigned from the bank’s board in December.

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The move assumes significance since the payments bank needs to have more independent directors than executive directors on its board, ET had reported earlier citing sources.

The Noida-based payments and financial services provider finds itself in a challenging spot after PPBL was barred by the RBI from accepting any fresh deposits or providing banking services after February 29. In its directive on January 31, the central bank attributed its decision to “persistent non-compliances and continued material supervisory concerns in the bank.”

The RBI’s diktat is expected to have a direct bearing on Paytm’s wallet, Fastag, quick response (QR) codes among other facilities which were issued under PPBL, and will now have to be transferred to other banks.