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Amid crisis after RBI restrictions, Paytm founder meets Nirmala Sitharaman
Photo courtesy: wikipedia.org

Amid crisis after RBI restrictions, Paytm founder meets Nirmala Sitharaman

| @indiablooms | 06 Feb 2024, 11:50 pm

New Delhi: Paytm founder and CEO Vijay Shekhar Sharma on Tuesday met Finance Minister Nirmala Sitharaman amid the crisis in the company's banking arm, following Reserve Bank of India’s (RBI), media reports said, citing sources.

On January 31, the RBI imposed major operational restrictions on Paytm Payments Bank Limited (PPBL), which include the discontinuation of accepting new deposits and conducting credit transactions after February 29.

Since then, the stock of One97 Communications, the payment services firm's parent arm, has nosedived, reports said.

RBI imposed restrictions on PPBL citing complete neglect by the company for regulatory standards and compliance requirements.

The company has sought an extension of the February 29 deadline from the RBI and has also been seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service Fastag, the source said, according to media reports.

Paytm Payments Bank, which powers most features of the digital payments app, competes with rivals like Walmart's PhonePe and Google.

On February 6, the stock hit an all-time low following a Reuters report indicating an investigation by the Enforcement Directorate into potential violations of foreign exchange regulations by platforms operated by Paytm.

A Paytm spokesperson refuted these allegations, describing them as "baseless and factually inaccurate."

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