Paytm To Work Beyond Feb 29: Vijay Shekhar Sharma

Paytm Wil Continue To Work Beyond Feb 29: Vijay Shekhar Sharma After RBI’s Order

SUMMARY

Paytm’s founder took to X to say that the app will continue to work beyond February 29, in what is his first public statement after RBI’s order

On January 31, RBI barred Paytm’s Payments Bank from any deposits or credit transactions, or top-ups in any of its customer accounts

Post RBI’s order, the startup ecosystem took over the social media platform to back Sharma and termed the central bank’s order harsh

Paytm founder and chief executive officer (CEO) Vijay Shekhar Sharma has said that the fintech giant will continue to work beyond February 29 after the Reserve Bank of India (RBI) barred Paytm’s Payments Bank from any deposits or credit transactions, or top-ups in any of its customer accounts.

Taking to social media platform X, Sharma said, “…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 serve 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.”

On January 31, under Section 35A of the Banking Regulation Act, 1949, the RBI said that the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case by February 29, 2024.

The bank cannot provide any other banking services, such as UPI facility and fund transfers after February 29, the RBI’s order noted.

The central bank in a statement said, “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards (National Common Mobility Cards), etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.”

The central bank further underlined that the steps were taken as Paytm Payments Bank was “persistent non-compliances and continued material supervisory concerns”.

Ever since RBI’s order, Paytm’s share price has been dwindling downwards. On Friday, (February 2), the company’s stock prices were locked at 20% lower circuit for the second consecutive day. At the time of filing this story, Paytm’s shares traded at INR 487.2 apiece.

On Thursday, Sharma informed exchanges that he has not taken any margin loans, or pledged any shares, whether directly or indirectly owned by him.

Post RBI’s order, the startup ecosystem took over the social media platform to back Sharma and termed the central bank’s order harsh.