Paytm Payments: The board of PPBL was reorganized earlier this week following the resignation of Vijay Shekhar Sharma as the bank’s part-time non-executive chairman.
An administrator designated by the RBI may take over the management of unclaimed deposits and certain crucial areas of Paytm Payments Bank, which is in danger of losing its license after March 15.
Should that scenario unfold, it would mark a noteworthy occurrence, potentially the first of its kind in more than twenty years, as reported by the Hindu Businessline.
As per the report, the administrator’s responsibility would be to ensure that any deposit claims made thereafter are satisfactorily repaid to the depositors.
The Financial Intelligence Unit imposed a penalty of Rs 5.49 crore on the bank for breaching anti-money laundering regulations. This significant fine underscores the severity of the violations. The bank’s failure to comply with anti-money laundering laws reflects a concerning lapse in regulatory adherence. Such penalties serve as a deterrent against financial institutions neglecting their obligations in preventing illicit activities.
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Earlier this week, Vijay Shekhar Sharma resigned as part-time non-executive Chairman of PPBL, prompting a reconstitution of the bank’s board. This move marks a significant change in leadership within the organization. PPBL will now undergo transitions as it adjusts to its new board structure.
A spokesperson for Paytm Payments Bank stated that the penalty relates to matters concerning a business segment that was discontinued two years ago. “Since then, we have significantly strengthened our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU),” the spokesperson added, emphasizing the bank’s commitment to compliance and improvement.
