Vijay Shekhar Sharma has stepped down as non-executive chairman and board member of its payments bank's unit in a major overhaul following a central bank clampdown.

"The Company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman," the company said in an exchange filing.

The Reserve Bank of India (RBI) had asked Paytm Payments Bank to wind down operations by March 15 due to persistent non-compliances and continued material supervisory concerns, triggering a meltdown in Paytm's stock.

Srinivasan Sridhar, former chairman of Central Bank of India, retired IAS officer Debendranath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal have joined the board as independent director.