Why did Paytm CEO met FM Nirmala Sitharaman amid crisis?

Paytm CEO Vijay Shekhar Sharma assured that the company is looking for all the options to ensure that stakeholders are protected from unwarranted and speculative stories.

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Courtesy: ANI

Paytm CEO Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman on Tuesday amidst the ongoing crisis surrounding Paytm Payments Bank after the Reserve Bank of India (RBI) imposed restrictions with an immediate halt to onboarding new customers.

These restrictions were due to "supervisory concerns" and non-compliance with regulations.

However, the company had earlier said that it had filed a specific clarification on Sunday, disputing the existence of any Enforcement Directorate probe pertaining to OCL, our associates, or our management.

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."

Further it added that the latest directive from the RBI is a part of the continuous process of compliance and supervisory engagement. We advise our stakeholders not to depend on unreliable sources and to consult the official news statement issued by the RBI on January 31, 2024, regarding this action.

The release further stated, "We are exploring all options to ensure that our stakeholders are protected from unwarranted and speculative stories."

However, no official resolution or announcement has been made yet.