Paytm CEO meets Nirmala Sitharaman after RBI blow to payments bank services: Report

Paytm CEO Vijay Shekhar Sharma met with Union Finance Minister Nirmala Sitharaman on Tuesday to discuss the crisis the company is facing after the Reserve Bank of India’s (RBI) restrictions, reported news agency ANI citing sources.

RBI had directed that Paytm Payments bank cease new deposits and credit transactions from February 29 onwards due to supervisory concerns and non-compliance of rules.

Sharma’s meeting with the Finance Minister comes a day after him and his company officials reportedly held a meeting with the RBI to present a plan for resolving regulatory issues.

When imposing the restrictions on Paytm Payments bank, RBI said its compliance validation report by external auditors revealed “persistent non-compliance” by the bank.

The central bank’s move raised concerns about the operations of Paytm Payments Bank and the shares of its parent firm One97 Communications Limited hit the lower circuit for three consecutive trading sessions.

Paytm has been in damage control mode and announced that the RBI’s order will not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts.

Vijay Shekhar Sharma has also assured his employees that there will be no layoffs at Paytm and the company is working with other banks for partnership.