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On Wednesday, Paytm Payments bank offered their statement about appointing a new CEO and Managing Director, Satish Kumar Gupta. The position of CEO of the digital bank had remained vacant since August when the last CEO stepped down. Appointment of Gupta is the third one that has happened in Paytm within two years.
The most recent CEO, Renu Satti, is said to have stepped down to be the head of the new company segment as the Chief Operating Officer. However, her reasons and means of stepping down are unclear, because, according to Reserve Bank of India (RBI), Satti was not qualified to be the CEO since she was not a banker. Reports, therefore, state that Paytm had been instructed by RBI to remove Satti from the post.
The CEO before Renu Satti was Shinjini Kumar who also left in May 2017 for another post.
Gupta seems to have the required qualifications since he has 35 years of experience in banking. In a report in The Economic Times, Paytm CEO, Vijay Shekhar Sharma, reiterated his support for the appointment of Gupta and his confidence in him to help them achieve their vision for the bank. Paytm has been offering zero balance bank accounts along with zero charges on digital transactions. They aim at reaching out to 500 million underserved customers with their services.
Before his appointment, Gupta had served as a Deputy General Manager at India State Bank for more than 30years. He later gained a position at National Payments Corporation of India as a Chief Project Officer.
The Veteran banker said in a statement that he had the privilege to witness the growth and disruption of the Indian economy in establishing digital payments and, therefore, he was ready to apply his understanding and skills of payments and banking in Paytm Payments Bank. He also pledged to align himself with the vision of the bank which is bringing financial inclusion using digital banking and payments.
Since June this year Paytm has experienced some problems and therefore stopped enrolling new customers. This was after an audit done by Reserve Bank of India from which they made certain observations about the company’s adherence to KYC (Know-your-customer) norms and its process of finding new customers.
A Paytm executive, however, said that the reason they stopped enrolling new customers was that they were working on a new method of opening accounts and therefore had to pause the process.