BENGALURU: Paytm CEO Vijay Shekhar Sharma has reportedly met the Reserve Bank of India (RBI) officials. This comes in the wake of the RBI’s curb on Paytm Payments Bank.
Various reports also suggest that Sharma also met the finance minister. It is said that Sharma and other officials from Paytm discussed the regulatory concerns. An email sent to Paytm regarding the meeting did not elicit any response.
The company has been working with the regulator to address their concerns following the central bank’s direction to Paytm Payments Bank. The RBI has barred the bank from accepting deposits, credit transactions and top-ups in any customer account after February 29. A report by brokerage Bernstein has said in its research report the RBI directive is intended at restricting the activities of PPBL and not aimed at the other functions of Paytm’s platform including UPI payments and loan distribution.
Paytm works with several banks along with its associate bank. It has been working with other banks for the past two years and will now accelerate the plans and completely move to other bank partners. The next phase of the company’s journey is to continue to expand its payments and financial services business, only in partnerships with other banks, the report said.
Meanwhile, One97 Communications Ltd (OCL) on Monday denied reports of probe or violation of Foreign Exchange rules by the company or its associate Paytm Payments Bank Limited. “We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation,” the company said.
Paytm rivals are now seeing a rise in app downloads. PhonePe spokesperson said they are seeing a surge in inbound requests from merchants for QRs and SmartSpeakers. “We are making sure we are meeting that demand,” the spokesperson added. Also, a group of start-up founders has written to the PM, FM and the RBI asking them to review the RBI’s directive and engage in dialogue with the fintech industry.
Paytm to expand biz in alliance with banks
Paytm is working with banks for the past two years and will accelerate the plans and move to other bank partners. Next phase of its journey is to continue to expand payments and financial services business, in partnerships with other banks, says a report