‘Paytm will keep working beyond February 29’, says Vijay Shekhar Sharma after RBI announces curbs

Paytm CEO Vijay Shekhar Sharma reassured customers on Friday, addressing considerations after the Reserve Bank of India (RBI) ordered its banking arm to stop accepting new deposits.

Vijay Shekhar Sharma said in a weblog publish that Paytm’s app will proceed to perform usually beyond February 29 for present customers to withdraw funds with out constraints. 

“Your favourite app is working and will keep working beyond February 29 as usual. I, with every Paytm team member, salute you for your relentless support. For every challenge, there is a solution, and we are sincerely committed to serving our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services, with PaytmKaro as the biggest champion of it,” stated Sharma. 

Following the announcement, Paytm additionally paused its lending platform operations briefly, participating in discussions with banks for potential partnerships.

Bhavesh Gupta, COO of Paytm, talked about ongoing conversations with lenders to deal with considerations and make clear the impression on the portfolio. In a convention name with analysts, Sharma emphasised the corporate’s dedication to instant compliance with the RBI’s instructions.

The RBI’s motion follows a complete system audit report and compliance validation by exterior auditors. Starting February 29, 2024, Paytm Payments Bank Limited (PPBL) is prohibited from accepting new deposits, credit score transactions, or top-ups in buyer accounts, pay as you go devices, wallets, FASTags, and extra.

Customers are allowed to withdraw or use balances with out restrictions, however different banking providers like fund transfers and UPI services will be discontinued. The nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. have to be terminated by February 29, 2024.

Settlement of all pipeline transactions and nodal accounts initiated on or earlier than February 29, 2024, ought to be accomplished by March 15, 2024. The RBI had beforehand directed PPBL to cease onboarding new clients in March 2022.

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