Last Updated: March 14, 2024, 17:13 IST
Paytm shares have misplaced 54% of their worth for the reason that regulatory clampdown, within the worst disaster for one of India’s largest digital fee companies. (Representative picture)
Paytm Payments Bank has determined to lay-off workers in sure divisions, together with operations, the sources with direct data of the matter stated
Indian digital funds agency Paytm plans to reduce shut to 20% of workers at its banking unit amid uncertainty over the unit’s future due to a looming central financial institution deadline for it to halt most operations, two sources stated.
Paytm Payments Bank has determined to lay-off workers in sure divisions, together with operations, the sources with direct data of the matter stated.
The unit had 2,775 workers as of December 2023, knowledge from data supplier Tracxn reveals.
Paytm, formally identified as One 97 Communications, owns a 49% stake within the financial institution which was ordered by the Reserve Bank of India (RBI) on the finish of January to cease accepting credit score transactions or deposits throughout merchandise such as financial savings accounts, pay as you go playing cards and digital wallets by March 15, following persistent compliance breaches.
Paytm shares have misplaced 54% of their worth for the reason that regulatory clampdown, within the worst disaster for one of India’s largest digital fee companies.
”Since this regulatory order has coincided with appraisal season, workers with low scores have been requested to go away,” the primary supply, an worker on the banking unit, stated.
”Employees are annoyed as a result of the administration has gone again on their phrase that no one shall be laid off,” this individual stated.
In an inner city-corridor assembly in February, Paytm CEO Vijay Shekhar Sharma assured the financial institution’s workers there can be no layoffs, the second supply, additionally a banking unit worker, stated.
Neither supply wished to be recognized as they don’t seem to be authorised to communicate to the media.
A spokesperson for Paytm Payments Bank declined to remark.
A Paytm spokesperson stated: ”There are not any layoffs right here.” The annual appraisal cycle is underway on the firm which can lead to changes primarily based on efficiency evaluations and function suitability, this spokesperson added. ”It’s essential to perceive that this course of is distinct from layoffs”.
After Friday’s deadline, prospects who’ve deposits within the financial institution’s accounts, wallets and toll tags for paying highways taxes, can nonetheless entry them. But no recent deposits might be made.
Paytm Payments Bank can even nonetheless maintain a regulatory licence until it’s withdrawn by the RBI.
It is unclear what function Paytm Payments Bank will serve after the enterprise halt, the second supply stated.
Both sources stated there had been no replace from Paytm on what banking workers would do after the transfer.
Paytm has absorbed about 100 workers from the banking unit, the second supply stated.
Paytm, which has been utilizing its banking unit to again digital funds via its personal app, is anticipating to get a licence this week from the National Payments Corp of India (NPCI) that might enable its prospects to proceed utilizing the Paytm app for funds via the nation’s standard unified fee interface (UPI)
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – Reuters)
