Nakul Jain Resigns as Paytm Payments CEO Amid RBI License Chase!

Paytm Payment Services CEO Nakul Jain Resigns
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The Paytm Payment Services Limited (PPSL), a subsidiary of One97 Communications, recently announced the resignation of its CEO, Nakul Jain. This significant leadership change comes as the company continues to pursue its ambitious goals in the rapidly evolving fintech sector. Mr. Jain has stepped down to embark on his entrepreneurial journey, marking the end of his tenure with PPSL. In a regulatory filing shared with the stock exchanges on Monday, the company disclosed its plans for the future while highlighting its focus on maintaining operational excellence.

CEO Resignation Amid Strategic Developments

The resignation of Nakul Jain occurs at a pivotal moment for PPSL. As the fintech company navigates critical regulatory processes, including obtaining a payment aggregator license from the Reserve Bank of India (RBI), this leadership change has garnered significant attention.

Challenges with Payment Aggregator License

One of the key challenges PPSL is addressing involves obtaining the RBI’s approval for a payment aggregator (PA) license. In November 2022, the central bank rejected Paytm’s application due to non-compliance with foreign direct investment (FDI) norms. This regulatory setback required the company to revisit its internal processes and take corrective measures.

In August 2024, PPSL achieved a significant milestone by securing government approval for downstream investments in the company. Following this approval, Paytm reapplied for the PA license, demonstrating its commitment to compliance and long-term operational goals.

PPSL emphasized that while awaiting regulatory clearance, it will continue to provide payment services to its existing online merchants. This ensures uninterrupted service for its clients, reinforcing its reputation as a reliable partner in the digital payments ecosystem.

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