New Delhi, Feb 2: Paytm’s CEO, Vijay Shekhar Sharma, reassured users on Friday that the digital payments and services app will remain operational and continue to function as usual even beyond February 29. In a statement on the social media platform X, Sharma, who is also the founder and CEO of One97 Communications Ltd (OCL), the company that owns the Paytm brand, emphasised their commitment to serving the nation while ensuring full compliance with regulations.
To every Paytmer,
Your favourite app is working, will keep working beyond 29 February 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 serve our nation in full…— Vijay Shekhar Sharma (@vijayshekhar) February 2, 2024
10 Things you must know (sub head)
1. Paytm CEO Vijay Shekhar Sharma has assured users that the digital payments app will operate as usual beyond February 29.
2. The Reserve Bank of India (RBI) has instructed Paytm Payments Bank Ltd (PPBL) not to accept deposits or top-ups in various accounts and instruments after February 29, 2024.
3. Paytm is actively developing a migration plan to address the impact on PPBL, wallet, FASTag, etc., users affected by the RBI directive.
4. Despite having a 49% stake, Paytm categorises PPBL as an associate rather than a subsidiary.
5. The RBI order is anticipated to impact Paytm’s annual operational profit by an estimated Rs 300-500 crore.
6.Existing deposits in savings accounts, wallets, FASTags, and NCMC accounts will remain unaffected by the RBI’s directive.
7. PPBL is required to settle all pipeline transactions and nodal accounts initiated on or before February 29, 2024, by March 15, 2024.
8. The Paytm Payment Gateway business, offline merchant network, and device business are reported to be unaffected by the RBI’s direction.
9. Paytm plans to continue onboarding merchants to its platform despite the challenges posed by the RBI order.
10. Financial services such as loan distribution, insurance distribution, and equity broking, not directly linked to the associate bank, are expected to remain unaffected by the RBI’s directive.
Paytm’s CEO, Vijay Shekhar Sharma, during an earnings call, expressed confidence in overcoming the challenges posed by the RBI order and sees it as a significant but temporary obstacle for the company.
