The RBI sends MD of PFS on indefinite leave

The RBI has ordered the MD of PTC India Financial Services the banking arm of PTC India to be placed on permanent leave till his retirement in October. The RBI issued the ruling on Monday against Pawan Singh, following the show-cause notice issued in January this year. Following the RBI’s order, the PTC India Financial Services Board met on Tuesday and, in the interim, gave Director-Finance Mahendra Lodha the additional charge of MD and CEO, The Economic Times reported.

The RBI probe was launched in response to complaints made by PTC India Financial Services’ three independent directors in January 2022. The Board of Directors, which included Kamlesh Vikamsey, Santosh Nayar, and Thomas Mathew, resigned en masse, citing major failures in corporate governance. The charges were rejected by the firm.

On May 8, the Securities and Exchange Board of India also issued show-cause notices to PTC India Financial Services MD and CEO Pawan Singh and Chairman Rajib Kumar Mishra.