‘From now, we will work with various other banks and not PPBL’: Paytm CEO

‘From now, we will work with various other banks and not PPBL’: Paytm CEO

A day after the Reserve Bank of India (RBI) barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any of its key products, Paytm has said that from now onwards, it “will work with various other banks and not PPB”.

In a series of posts on social media platform X, Paytm shared updates from a conference call with its founder and CEO Vijay Shekhar Sharma, where the company said it would “continue to decline & decrease dependency on PPB”.

“Two years ago, embargo was placed earlier on on-boarding new customers, we had already started to work with banks, and we will continue to decline & decrease dependency on PPB,” Sharma said.

“OCL and PPSL are already in process of moving nodal accounts to other banks, and marketing business services are not affected due to these directions,” Sharma added.

While acknowledging that this was a “speed bump” for the company, Paytm said, “There are no details sent to us separately by RBI. The keyword here is that this is a discussion between Paytm Payments Bank and the central bank”.

“With respect to operations, going forward, we will work with large banks and who also provide these services to other consumer companies,” Paytm President Madhur Deora was quoted as saying.

On Wednesday, the central bank had barred PPBL from accepting deposits or top-ups in any of its key products — customer accounts, prepaid instruments, wallets, FASTags and National Common Mobility Card (NCMC) among others — after February 29 in the wake of “persistent non-compliances and material supervisory concerns”.

The RBI decision essentially barred PPBL from offering all its core services — including accounts and wallets — from March, effectively crippling the company’s business.

Given the significant customer base of Paytm — once the poster boy of India’s fintech revolution — this could have a significant impact on a large number of customers.

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