Paytm PB MD & CEO Surinder Chawla resigns due to personal reasons

Chawla was appointed as managing director and CEO of Paytm Payments Bank in January 2023 after it received a nod from RBI

Managing director (MD) and chief executive officer (CEO) of the beleaguered Paytm Payments Bank, Surinder Chawla, has resigned “on account of personal reasons”, the company said in a regulatory filing on Tuesday.

The company said the resignation would be effective from June 26 but did not name any potential successor to Chawla, who was appointed as the MD and CEO of the company in January 2023 after it received a nod from the Reserve Bank of India (RBI)

“…Surinder Chawla, Managing Director and CEO of the Paytm Payments Bank Ltd (PPBL) has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent,” the company said.

Before joining PPBL, Chawla was working with RBL Bank, where he served as Head - Branch Banking.

His resignation comes at a time when PPBL has been facing regulatory scrutiny. The RBI, in February, issued directives restricting credit and debit transactions for the bank's customers starting March 15 due to lapses in due diligence. 

Last month, Paytm founder Vijay Shekhar Sharma also stepped down from his role as non-executive chairman of PPBL, leading to its board being reconstituted.

“As informed earlier, nearly all agreements between the company and PPBL have been terminated as per our disclosure on March 1, 2024, and the board of PPBL has been reconstituted with five independent directors including an Independent Chairperson, and no nominees from the company, as per our disclosure on February 26, 2024,” the company said.

It also stated that it continued to collaborate with banking partners to enhance its merchant acquiring and the Unified Payments Interface (UPI) services.