New Delhi:

Paytm Founder and CEO Vijay Shekhar Sharma has said the company was like his daughter who was a school topper and met with an accident on the way to an entrance test.

Metaphorically speaking at the 7th JITO Incubation and Innovation Fund (JIIF) Foundation Day, Mr Sharma said, “As a founder, my company is like my daughter…as a company, we were getting mature…it is just as if a daughter who is a school topper has met with an accident on way to an entrance test…that is the kind of feeling which is little personal, emotional feeling”.

At the event, he also spoke about his learnings from the Reserve Bank of India (RBI) action on Paytm Payments Bank.

The CEO acknowledged that the setback was emotionally challenging on a personal level, but it served as a valuable lesson in fulfilling responsibilities professionally.

In addition, Mr Sharma talked about his dreams and ambitions, and his highs and lows.

He said that his personal ambition is to build a $100 billion company, adding that he wants Paytm to be recognised globally as an Indian firm.

Furthermore, he said that listing a company brings “a lot more responsibility and maturity,” which has its own value and joy.

Meanwhile, Paytm has witnessed early signs of recovery and strong stabilisation for its Unified Payments Interface (UPI) business, marking a strong turnaround for the company.

The total value of UPI transactions processed on the Paytm platform grew to Rs 1.24 trillion in May, on the back of the company launching several initiatives for users such as Credit Card on UPI, as well as pushing the lever on UPI Lite.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

The board of India’s Paytm Payments Bank is independent and capable of addressing regulatory concerns, the chief executive officer of digital payments firm Paytm, formally known as One97 Communications Ltd, (OCL) said on Monday.

“I, personally or anyone from OCL, have no connection with the payments bank,” Vijay Shekhar Sharma said at a webinar.

“There is an independent board taking care of everything and we have full faith in their capability.”

The Reserve Bank of India (RBI) in late January had ordered Paytm Payments Bank to stop accepting new deposits in its accounts or digital wallets from March, citing supervisory concerns and persistent non-compliance with rules.

Paytm Payments Bank’s parent is One 97 Communications, popularly known as Paytm for its digital payments app.

One97 owns 49% in the payments bank, while Mr Sharma holds the remaining 51%.

In February, following the RBI’s order, Mr Sharma stepped down as non-executive chairman and board member of Paytm Payments Bank.

 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Paytm CEO Vijay Shekhar Sharma on Monday resigned as non-executive chairman and board member of Paytm Payments Bank, amid ongoing regulatory challenges faced by the digital payments giant. The decision follows a series of measures imposed by the Reserve Bank of India (RBI), including an order for Paytm Payments Bank to wind down operations by March 15 due to persistent compliance issues and supervisory concerns.

The RBI’s action against the payments bank stemmed from various concerns, including inadequate customer identity checks and a perceived lack of arms-length distance from the parent company, Paytm. These issues prompted a major board overhaul, with former chairman of Central Bank of India, Srinivasan Sridhar, former Bank of Baroda Executive Director Ashok Kumar Garg, and two retired Indian Administrative Service (IAS) officers joining the payments bank’s board.

Paytm’s decision to reconstruct the board with independent and executive directors is seen as an effort to demonstrate compliance with regulatory norms and salvage the situation. While the RBI did not explicitly mandate the board reconstruction, it is speculated that the move aims to reassure the regulatory body about Paytm’s commitment to adhering to norms.

Why Vijay Shekhar Sharma Quit

Mr Sharma owns a 51 per cent stake in Paytm Payments Bank while One 97 Communications, as Paytm was formally known, owns the rest. Mr Sharma said that his resignation from the board and the appointment of independent directors were strategic steps to enable a smooth transition and enhance governance structures. The move is also seen as an attempt to disassociate Paytm from its payments bank unit and position it as an independent entity.

The regulatory challenges faced by Paytm have impacted its stock value, with a significant drop since the RBI’s order. However, the stock has shown signs of recovery, attributed to Paytm’s partnership with new banking entities and the RBI extending the deadline for winding down the payment bank’s operations.

Nirmala Sitharaman’s Action

Finance Minister Nirmala Sitharaman on Monday convened a meeting with representatives from the fintech industry to discuss their concerns and issues. However, the developments at Paytm Payments Bank were not specifically addressed during this meeting, according to two government officials who were present, reports Reuters.

In response to the crisis, the finance ministry has announced plans to hold discussions with Indian law enforcement agencies and fintech firms in the near future. This upcoming meeting aims to facilitate communication between fintech firms and various enforcement agencies, as mentioned in a statement released by the ministry.

The concerns raised by some listed fintech companies regarding their ownership structures will be examined by both the central bank and the government. This move signals a broader effort to enhance transparency and accountability in the fintech sector.

Additionally, the government has pledged to simplify ‘know your customer’ (KYC) norms across the fintech space. Simplifying KYC requirements could streamline onboarding processes for users, potentially addressing some of the operational challenges faced by fintech firms.
 

Vijay Shekhar Sharma. File.
| Photo Credit: Reuters

Vijay Shekhar Sharma has stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL), and the board of the bank has been reconstituted.

The Reserve Bank has barred the PPBL from accepting deposits and credits from any customer post-March 15 for persistent non-compliances and continued material supervisory concerns in the bank.

PPBL has reconstituted its Board of Directors with the appointment of Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, Paytm said in a regulatory filing on Monday.

These persons had recently joined as Independent Directors, it said.

One 97 Communications Ltd (OCL) is the owner of the Paytm brand.

“The company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman,” the filing said.

OCL supports PPBL’s move of opting for a board with only independent and executive directors by removing its nominee, it added.

“PPBL’s future business to be led by a reconstituted Board,” the filing stated.

Paytm said on Monday that Vijay Shekhar Sharma would step down as non-executive chairman and board member of its payments bank’s unit, as the embattled digital payments company overhauls its board after a central bank clampdown.

The action against Paytm Payments Bank followed “serious supervisory concerns”, including inadequate customer identify and a lack of arms-length distance with Paytm, sources had told Reuters.

The Reserve Bank of India has asked the banking unit to wind down its operations by March 15 due to persistent non-compliance and continued material supervisory concerns, triggering a meltdown in Paytm’s stock.

Srinivasan Sridhar, former chairman of state-owned Central Bank of India, former Bank of Baroda Executive Director Ashok Kumar Garg and two retired Indian Administrative Service officers will join the board, Paytm said in an exchange filing.

The new board members’ expertise will be “pivotal in guiding us toward enhancing our governance structures and operational standards, further solidifying our dedication to compliance and best practices”, Paytm Payments Bank CEO Surinder Chawla said.

Paytm supports its banking unit’s move of opting for a board with only independent and executive directors by removing its nominee, it said, adding Sharma was also stepping down from the board to “enable the transition”.

Mr Sharma owns a 51 per cent stake in Paytm Payments Bank, while One 97 Communications, as Paytm is formally known, owns the rest.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Shares of One97 Communications Ltd, which owns Paytm brand, climbed 10 per cent on Wednesday, February 7 morning, continuing its recovery journey.

The stock jumped 9.99 per cent to Rs 496.75 on the BSE after a firm beginning.

Shares of the company climbed 9.99 per cent to Rs 496.25 on the NSE.

Earlier, Vijay Shekhar Sharma, founder and CEO of One97 Communications, met Finance Minister Nirmala Sitharaman in the presence of top Department of Financial Services officials, amid the crisis engulfing Paytm Payment Bank’s operation

He was told in no uncertain terms by Ministry representatives that the bank needs to comply with Reserve Bank of India (RBI) directives and regulations. The government has no role to play in the matter that entails the central bank asking Paytm Payment Bank to suspend acceptance of deposits after February 29, it was conveyed to Mr. Sharma, sources in the know said.

The stock of One97 Communications Ltd rebounded by over 3 per cent on Tuesday after three days of sharp fall.

From February 1-5 (three days of trading), the company’s stock tumbled over 42 per cent, wiping out Rs 20,471.25 crore from its market valuation, following the RBI’s crackdown.

Last week, RBI ordered Paytm Payments Bank Ltd, a restricted bank that can take deposits but cannot lend, to not take any further deposits or conduct credit transactions or carry out top-ups on any customers accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.

Paytm Payments Bank Limited (PPBL) is an associate of One97 Communications Limited (OCL).

One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Founder Vijay Shekhar Sharma has a 51 per cent stake in the bank.

A Delhi advocate has claimed that she lost Rs 50 lakh to a “sim swapping scam”. As per an Indian Express report, the woman received three missed calls from an unknown number. After she called back from a different number, the person said that it was a courier call. The woman then shared her house address, the report added. After sharing the details, the 35-year-old reportedly got two transaction notifications from her bank.

Delhi Police’s cyber unit said the woman didn’t share any information like OTP (one time password) with the scammer.  

What is Sim Swapping Scam?

A scammer manages to get access to your SIM card. They trick the network provider into linking your number to the SIM card they have in possession.

How to protect yourself?

There are some basic points that one should keep in mind: 

– Never entertain a person who sounds suspicious to you.

– If your sim card is locked or it shows an error message like “no valid,” immediately get in touch with your service provider and block your number. 

– You can also avail of the sim lock facility. It will help keep your details safe.

– Following this, block your UPI and internet banking.

– Keep changing your passwords at regular intervals.

– Keep a check on your account details. 

– In case of any fraudulent transaction, you must inform the bank immediately. 

– You can opt for a two-factor authentication security feature. It will help keep your details safe.

How long does it take to crack passwords?

Recently, Paytm founder and CEO Vijay Shekhar Sharma spoke about how much time a hacker takes to crack passwords. He also spoke about the importance of passwords.

Mr Sharma said that it is the length of the password that matters the most. He has shared a detailed chart on X – formerly known as Twitter. The note attached to it read, “It is the length of the password that matters most. Add a few small caps to make one.”

It is length of password that matters most. Add few small caps alphabets too to make one. pic.twitter.com/CATY4gSEPk

— Vijay Shekhar Sharma (@vijayshekhar) October 14, 2023

For number-only passwords, the time taken by a hacker can vary from “instantly to six days” depending on its characters.