Paytm’s Praveen Sharma Resigns From His Senior VP Role

Paytm VP Praveen Sharma

Three points you will get to know in this article:

  • Praveen Sharma worked at Google for 9 years, focusing on India and Asia-Pacific, before joining Paytm.
  • March 31 is the last day of Sharma’s employment
  • RBI directive bans Paytm Payments Bank from transactions until March 15.

Resignation of Senior VP Praveen Sharma

Praveen Sharma, the senior vice president of business at Paytm’s parent company One 97 Communications, has officially announced his resignation after more than four years of service. The company recently filed this information, stating that his last day of service will be on March 31st.

In his resignation letter, Sharma expressed his intention to explore “new opportunities” after leaving the company. Before joining Paytm in 2019, Sharma spent nine years in various executive roles at Google, where he focused on India and the Asia-Pacific regions.

Shift of Point of Sale Terminals to RBL Bank

This news follows closely on the heels of Paytm founder and CEO Vijay Shekhar Sharma’s decision to step down from the board of Paytm Payments Bank amid regulatory concerns.

In the latest development, it’s been hinted that Paytm is gearing up to shift its point of sale (PoS) terminals, those handy devices for handling card payments at stores, over to RBL Bank.

Here’s the scoop: While One 97 Communications, the parent company of Paytm, will continue to oversee the day-to-day operations of these terminals, RBL Bank will take the reins when it comes to processing transactions.

Impact of Regulatory Concerns on Paytm's Operations

This move comes on the heels of a directive from the Reserve Bank of India (RBI) in January. The directive put a stop to Paytm Payments Bank accepting any deposits, credit transactions, or top-ups in customer accounts after February 29, with an extension granted until March 15.

Third-Party Application Provider License Acquisition

Last week, One97 Communications clinched the Third-Party Application Provider (TPAP) license from the National Payments Corporation of India (NPCI).

This license allows the fintech giant to run UPI services under a multi-bank setup. Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will serve as payment system provider (PSP) banks to One 97 Communications.

Investor Reaction and Stock Performance

Following the RBI announcement, Paytm shares took a nosedive, plummeting nearly 60%. Moreover, six mutual funds completely unloaded their stakes in Paytm’s parent company last month, while another six significantly scaled down their investments. The total sell-off reached over 91 lakh shares valued at INR 380 crore by the end of February.

Praveen Sharma, the senior vice president of business at One 97 Communications, the parent company of Paytm, has resigned after over four years of service, creating a leadership vacuum. Paytm’s strategic shift of its point of sale terminals to RBL Bank, in response to regulatory concerns, is a pivotal development. Moreover, the acquisition of the Third-Party Application Provider (TPAP) License from NPCI and the significant decline in Paytm’s stock value, amidst divestments by mutual funds, underscore the company’s efforts to navigate regulatory changes and optimize its operations.

SA Team

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