User complaints at Paytm Payments Bank had increased significantly before the Reserve Bank of India (RBI) imposed regulatory proceedings on the company. According to company records, the payments bank had a significant increase in client complaints over the previous fiscal year.
According to a credible source, the payments bank received 66,751 complaints in various categories for the fiscal year that ended March 31, 2023. This represents a two-and-a-half-fold increase over the previous year's 26,692 complaints. Complaints totaled 25,988 in FY21 and 14,369 in FY20.
These concerns are generally user-generated and typically resolved by the bank within five to six days.
Meanwhile, Paytm Payments Bank, which has been entangled in regulatory challenges, stated that it has replaced its board with banking and administrative experience. Vijay Shekhar Sharma, the founder of Paytm, has also stood down from the payments bank's board.
Paytm Payments Bank has appointed former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal to the board as independent directors, according to parent company One 97 Communications filings.
One 97 Communications likewise pulled its nominee from the board, and Paytm Payments Bank announced that it will begin the process of appointing a new chairman. Paytm Payments Bank has been forbidden from accepting deposits and credits from consumers after March 15 due to chronic non-compliance and serious supervisory concerns.
