Paytm confirms resignation of Director Manju Agarwal amid RBI crackdown on Payments Bank
Manju Agarwal stepped down from the board of Paytm Payments Bank on February 1 citing personal commitments, according to a filing with the exchange.
FollowPaytm on Monday officially confirmed media reports regarding the resignation of Manju Agarwal, an independent director of Paytm Payments Bank Limited (PPBL). Manju Agarwal stepped down from the board of Paytm Payments Bank on February 1 citing personal commitments, according to a filing with the exchange.
In a regulatory filing, Paytm said, “We hereby submit that our associate entity, Paytm Payments Bank Limited (PPBL), 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.”
Manju Agarwal, previously Deputy Managing Director at the State Bank of India (SBI), had been a member of the PPBL board since May 2021.
"We hereby submit that PPBL is our associate entity and this event is not deemed material for the company and does not impact the operations/ business of the company, as per the provisions of Regulation 30 of the SEBI," the company added.
The Reserve Bank of India (RBI) imposed significant business restrictions on Paytm Payments Bank on January 31, which include prohibiting the acceptance of fresh deposits and conducting credit transactions after February 29.
The regulator uncovered significant irregularities in KYC processes, exposing customers, depositors, and wallet holders to serious risks. In its investigation, the RBI discovered instances where the same PAN was linked to over 100 customers, and in some cases, to over 1,000 customers, with transactions exceeding regulatory limits in minimum KYC pre-paid instruments, raising concerns about money laundering.
On February 9, the payments firm announced the formation of an advisory committee chaired by former Securities and Exchange Board of India (SEBI) chairman M Damodaran to guide PPBL on compliance and regulation. The three-member committee comprises former president of the Institute of Chartered Accountants of India (ICAI) MM Chitale and former chairman and MD of Andhra Bank R Ramachandran.
