New Delhi: Paytm Payments Bank, a unit of One97 Communications Ltd., had appointed Satish Kumar Gupta as managing director and chief executive officer of the digital bank, the company said in a statement on Wednesday.
Gupta, who has over 35 years of leadership experience, previously had stints as the chief product officer at National Payments Corporation of India and State Bank of India.
Gupta’s appointment comes a few months after Paytm said Renu Satti had stepped down as the CEO of Paytm Payments Bank to head the new retail segment at the company as chief operating officer.
This is the third CEO appointment at Paytm Payments Bank in two years after former Central Bank executive Shinjini Kumar left Paytm in May 2017.
Mint reported in August that RBI asked Paytm to remove Renu Satti — ex chief executive of the payments bank, following certain objections about her ability to lead a banking services firm. RBI requires a person to be a banker in order to become the chief executive of a payments bank.
The post of Payment Bank CEO remained vacant since August.
“Having been a part of the banking and payments industry for close to four decades, I’ve been fortunate to experience the disruption and growth that the Indian economy has witnessed in promoting digital payments," said Gupta. “I look forward to leveraging my understanding of banking and payments at Paytm Payments Bank and aligning myself to its vision of bringing financial inclusion through digital payments."
Paytm Payments Bank offers zero balance accounts and charges on digital transactions and aims to build a new business model that caters to 500 million underserved consumers in the country.
“His (Gupta’s) expertise will help us realize the vision that we have set out for our payments bank," said Vijay Shekhar Sharma, founder and chief executive officer at Paytm.
Paytm Payments Bank launched in May last year was under scrutiny after the Reserve Bank of India directed the bank to stop enrolling new customers following audit observations.
Paytm is still not onboarding new customers, according to a Paytm spokesperson. “Paytm bank is awaiting RBI confirmation on enrolling new customers," the spokesperson added.
Other payments banks in the country include Fino Payments Bank, Airtel Payments Bank and India Post Post Payments Bank among others.
NCR-based Paytm Payments Bank is a separate entity, 51% owned by Sharma and the rest held by One97 Communications.