Paytm CEO Vijay Shekhar Sharma held discussions with Finance Minister Nirmala Sitharaman, in accordance with sources quoted by ANI.
The assembly adopted the Reserve Bank of India’s (RBI) stringent directive issued on January 31, which mandated an instantaneous halt to the onboarding of recent prospects by Paytm Payments Bank and referred to as for a cessation of its key banking companies post-February 29.
The RBI’s choice was prompted by “persistent non-compliances and continued material supervisory concerns” recognized inside the financial institution. Consequently, Paytm Payments Bank was directed to stop further deposits, withdrawals, and top-ups throughout varied customer-related monetary devices, together with wallets, accounts, pay as you go gadgets, and National Common Mobility Cards (NCMC).
The regulatory motion had a profound impression on Paytm, with shares of its guardian firm, One97 Communications Ltd, experiencing a pointy decline. Over two days, from January 31 to February 2, 2024, the corporate’s market capitalization decreased by Rs 17,378.41 crore, reflecting a 36 % drop in share worth.
In response to the RBI’s directives, Paytm requested an extension of the February 29 deadline and sought readability relating to the switch of licences for pockets enterprise and FASTag operations. However, no decision or remedial measures have been determined upon in the course of the assembly between Sharma and RBI officers.
The disaster prompted a gaggle of founders to attraction to RBI Governor Shaktikanta Das and Finance Minister Sitharaman, urging a evaluation of the regulatory actions imposed on Paytm Payments Bank. They careworn the significance of reassessing the proportionality of the restrictions, contemplating their potential impression on the funds financial institution, the fintech ecosystem, and the broader financial system. They additionally advocated for a chance for Paytm to deal with deficiencies and exhibit compliance.
Despite the challenges, Paytm clarified that neither the corporate nor Vijay Shekhar Sharma are underneath investigation for any Enforcement Directorate probe or Foreign Exchange Management Act (FEMA) violations. Additionally, rumours of negotiations with Mukesh Ambani for Jio Financial Services to amass Paytm wallets have been dismissed.
