In another jolt to India's leading financial technology company Paytm, its Chief Operating Officer (COO) Bhavesh Gupta resigned from the country. Bhavesh Gupta's resignation letter was shared by Paytm in its release under which it also announced a major rejig in the company's leadership. Sharing the announcement, Paytm wrote on X, "We're excited to announce leadership changes as we double down on our payments & financial services offerings. Strengthening succession planning, Bhavesh Gupta transitions to advisory role while Varun Sridhar becomes CEO of Paytm Services Pvt Ltd. Welcome aboard Rakesh Singh, our new CEO for Paytm Money." Now, the question arises why did Bhavesh Gupta resign or what is Bhavesh Gupta's resignation reason? Below is what we know so far-
Why did Bhavesh Gupta resign as Paytm's COO?
Addressing his resignation letter to CEO Vijay Shekhar Sharma, Bhavish wrote, "In line with our on-going conversations, due to personal reasons, I will be unable to continue as President & COO and am resigning effective close of business hours 31st May 2024 and request to be relieved accordingly. I will continue to support you and the organization in my capacity as an Advisor in the CEO office. Kindly acknowledge the receipt and take all necessary actions, including filing of requisite forms and disclosures under applicable laws as required."
For the unversed, Bhavish Gupta was steering the lending business, online and offline payments, and compliances, among others, at Paytm. Verticals, headed by him, were adversely impacted by the RBI's ban on Paytm Payments Bank (PPBL) from carrying on new transactions.
RBI banned Paytm Payments Bank from accepting new deposits from March 15, and ruled out any review of its action against the company. It has cited persistent non-compliances and continued material supervisory concerns, for the regulatory action. Union minister Rajeev Chandrasekhar was quoted saying, "...This notion that RBI... the regulator's action against Paytm Payments Bank has rattled fintech is... I don't think that's a correct characterisation...I think it has drawn the attention of fintech entrepreneurs, to the fact that you also have to know how to comply with the law. Regulatory compliance is not an optional thing for any country in the world, certainly not in India, and it is something that they (entrepreneurs) should pay more attention to."