look news india
New Delhi: Troubled Paytm Payments Bank is not getting any relief. Paytm Payments Bank CEO Surinder Chawla resigned on Tuesday. This information has also affected Paytm's shares.
The stock fell 4 per cent to Rs 388 on both BSE and NSE. The market value of the company fell by Rs 463.84 crore during morning trading.
Why did the company's shares fall?
Surinder Chawla's resignation comes at a time when Paytm Payments Bank Ltd is facing prohibitory action from banking regulator RBI.
PPBL Managing Director and CEO Surinder Chawla has resigned with effect from April 8, 2024, for personal reasons and to pursue better career prospects, One97 Communications said in a regulatory filing on Tuesday. He will be released from the PPBL at the close of business on June 26, 2024.
RBI action on Paytm
Reserve Bank of India has taken major action against Paytm Payments Bank (PPBL). On January 31, RBI had directed to stop accepting deposits or top-ups in customer accounts, wallets, Fastag and other instruments through PPBL after February 29. After this its deadline was extended till March 5.
Surinder Chawla had joined PPBL in January last year after Paytm Payments Bank got approval from the Reserve Bank of India.
The central bank said in a statement that the directive comes after concerns regarding persistent non-compliance and continuous content monitoring. One97 Communications Limited (OCL) holds 49 per cent stake in PPBL.