Paytm Payments Bank / Paytm CEO breaks RBI ban, will now do this work

Paytm Payments Bank: Leading Indian fintech company Paytm is currently facing a ban imposed by the Reserve Bank of India (RBI). Due to issues related to violation of rules and compliance, RBI has banned Paytm Payments Bank (PPB) from providing various types of services from 29 February 2024. Company's Founder and Managing Director (MD) Vijay Shekhar Sharma has given a big statement in this matter. He said that Paytm is taking steps to comply with the order and it will work with other banks.

Vijay has made it clear that after the RBI ban, Paytm will not work with Paytm Payments Bank. On the contrary, the company will be seen working with other banks.

Speaking to journalists through a virtual press conference on Thursday, Paytm founder said that One 97 Communications Limited (OCL) and Paytm are already working on shifting the nodal accounts to other banks.

Paytm founder gave this statement

Vijay said that no separate details have been sent to us (Paytm) by RBI. He said that Paytm considers it only a speed bump. But we believe in the partnership of banks and we will be able to see it in the next few days.

"On the behalf of Paytm, this is more of a speed bump, but we believe in partnership of the banks and we will be able to see to the same in the next few days," says our Founder and CEO @vijayshekhar

— Paytm (@Paytm) February 1, 2024

What will happen to equity and insurance?

Speaking at the event, President and COO Bhavesh Gupta said that the company is working with many other partners. Talking about equity and insurance sector, he said that RBI's decision will not affect it because both work independently.

PPB nodal accounts closed

Earlier on Tuesday, RBI had closed the nodal accounts of Paytm's parent company One97 Communications and Paytm Payments Bank. This has stopped PPB from providing services like fund transfer, UPI service including Bharat Bill Payment Operating Unit.