Manju Agarwal Resigned as independent director of Paytm Payments Bank

PayTm Blow: Manju Agarwal Resigned as independent director of Paytm Payments Bank

Manju Agarwal Paytm: The Reserve Bank of India (RBI) had decided to ban Paytm Payments Bank on January 31, 2024. After this decision, many media reports were claiming that Manju Agarwal, the independent director of Paytm Payments Bank, has resigned. Today, Paytm has confirmed this. More details in this report.

Manju Agarwal Paytm Payment Bank: Paytm is facing yet another crisis. Paytm Payments Bank's independent director Manju Agarwal has resigned from the board of the company, Paytm's parent company One97 Communications said on Monday. His resignation has been accepted since February 1. Paytm said Manju Agarwal has decided to step down due to personal reasons. She has been on the board of the company since May 2021.

Manju Agarwal resigned on February 1
 

In a regulatory filing, One97 Communications said that Manju Agarwal had resigned on February 1. This has been approved by the board of Paytm Payments Bank on February 6. We would like to inform that this decision will not have any impact on the company's business. Manju Agarwal's resignation comes at a time when Paytm Payments is facing an RBI ban. The RBI had on January 31 barred the bank from accepting any deposits. Since then, questions have been raised about the bank's future.

Paytm Payments Bank Independent Director Manju Agarwal Resigns From The Board; Confirms The Company#Paytm #PaytmPaymentsBank #IndependentDirector #ManjuAgarwal #resigns #PayTMCrisis https://t.co/JEmJ4nr8Ej

— Free Press Journal (@fpjindia) February 12, 2024

What did the investigation find?
 

The central bank in its investigation had found many loopholes in KYC. As a result, customers, depositors and wallet holders were at great risk. The Reserve Bank found many cases in which more than 100 people had the same PAN. Many such cases were also found during the investigation in which more than 1000 customers had linked the same PAN card. The biggest problem was that some of these accounts were transacting crores of rupees.

The central bank had expressed concern about serious problems like money laundering after these loopholes were exposed and then took action. Paytm holds 49 per cent stake in Paytm Payments Bank.

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Paytm Payments Bank is facing an FDI probe by the Reserve Bank of India (RBI). Paytm Payments Services Ltd, a subsidiary of One97 Communications, received FDI from China. An inter-ministerial committee is looking into the same investment from China in PPSL. One97 Communications is owned by China's Ant Group. PPSL had applied for a licence with the RBI to operate as a payment aggregator and payment gateway in November 2020. However, the RBI in November 2022 ordered the company to re-submit the same to comply with Press Note 3 under the FDI rules.