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Paytm’s founder and CEO Vijay Shekhar Sharma reportedly met the finance minister Nirmala Sitharaman on Tuesday, February 6. Earlier in the day, CEO Vijay Shekhar Sharma and a few Paytm officials had met the Reserve Bank of India (RBI) to discuss regulatory concerns.
The meetings come after the RBI asked Paytm Payments Bank last Wednesday to stop accepting new deposits in its accounts and its popular digital wallets from March, citing supervisory concerns and non-compliance with rules.
Sources told news agency Reuters that discussions are on about addressing the regulatory concerns and compliance issues with both the RBI and the ministry.
The company is reported to have sought an extension of the central bank’s February 29 deadline to stop all banking services. Paytm is also said to have asked for clarity from the RBI on the transfer of its licence for the wallets business and digital highway toll payment service Fastag.
RBI is said to have heard Paytm out without making any commitments.
What Paytm said
Paytm spokesperson said, “Over the last two years, we have been working with multiple third-party leading banks. We are expanding these relationships, and they are progressing positively. We continue to operate (and have been in the past) with not just one partner but multiple banking partners for a host of services including Paytm QR. In the instances where our associate Paytm Payments Bank operates as a back-end bank, these services can seamlessly be transitioned to other partner banks. This means that for our merchant partners, there will be no disruptions, no need to revisit existing setups, and no additional effort. They can continue using our pioneering, Made-In-India Paytm QR codes, Soundbox, and card machines as before.”
“We are actively engaging with our vast network of merchant partners and it’s heartening to see their unwavering support and faith in us. They understand that Paytm QR, Soundbox, and card machines will continue to function as usual. We are onboarding more merchants and also observing a consistent pattern in customer behaviour, with no shift in their preference for using Paytm for payments. Paytm is committed to compliance with all regulatory directives while continuing to offer innovative, secure, and seamless digital payment solutions to millions across India. We remain focused on our mission to empower businesses and consumers alike, reinforcing our role as a leader in India’s digital payments landscape.”
The meetings come after the RBI asked Paytm Payments Bank last Wednesday to stop accepting new deposits in its accounts and its popular digital wallets from March, citing supervisory concerns and non-compliance with rules.
Sources told news agency Reuters that discussions are on about addressing the regulatory concerns and compliance issues with both the RBI and the ministry.
The company is reported to have sought an extension of the central bank’s February 29 deadline to stop all banking services. Paytm is also said to have asked for clarity from the RBI on the transfer of its licence for the wallets business and digital highway toll payment service Fastag.
RBI is said to have heard Paytm out without making any commitments.
What Paytm said
Paytm spokesperson said, “Over the last two years, we have been working with multiple third-party leading banks. We are expanding these relationships, and they are progressing positively. We continue to operate (and have been in the past) with not just one partner but multiple banking partners for a host of services including Paytm QR. In the instances where our associate Paytm Payments Bank operates as a back-end bank, these services can seamlessly be transitioned to other partner banks. This means that for our merchant partners, there will be no disruptions, no need to revisit existing setups, and no additional effort. They can continue using our pioneering, Made-In-India Paytm QR codes, Soundbox, and card machines as before.”
“We are actively engaging with our vast network of merchant partners and it’s heartening to see their unwavering support and faith in us. They understand that Paytm QR, Soundbox, and card machines will continue to function as usual. We are onboarding more merchants and also observing a consistent pattern in customer behaviour, with no shift in their preference for using Paytm for payments. Paytm is committed to compliance with all regulatory directives while continuing to offer innovative, secure, and seamless digital payment solutions to millions across India. We remain focused on our mission to empower businesses and consumers alike, reinforcing our role as a leader in India’s digital payments landscape.”
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