Following the Reserve Bank of India’s (RBI) directive, Paytm has outlined its response and the potential impact on its operations. Here’s a breakdown of Paytm’s actions and the implications for its services:
Financial Impact: Paytm anticipates a potential adverse impact on its annual earnings in the range of ₹300 to 500 crore due to the RBI directive preventing its subsidiary, Paytm Payments Bank, from accepting new deposits starting in March.
Compliance Measures: Paytm is promptly taking measures to adhere to RBI directives and is collaborating with the regulator to swiftly address concerns.
Shift in Strategy: Paytm’s parent company, One97 Communications Ltd. (OCL), announced plans to shift entirely to other bank partners, excluding Paytm Payments Bank Limited (PPBL). OCL will work only with other banks for its payments and financial services business in the future.
Services Affected: Paytm’s Payment Gateway business, serving online merchants, will continue delivering payment solutions to existing clients. User deposits in savings accounts, Wallets, FASTags, and NCMC accounts remain unaffected. Offline merchant payment network services, including Paytm QR and Paytm Card Machine, will continue seamlessly.
Financial Services Unaffected: Other financial services offered by OCL, such as loan distribution, insurance distribution, and equity broking, are not related to Paytm Payments Bank Limited and are expected to be unaffected by the RBI directive.
Independence of Paytm Payments Bank: Paytm clarified that its founder, Vijay Shekhar Sharma, has not engaged in margin loans or pledged any shares owned by him. Paytm Payments Bank Limited operates independently under its management and board, with OCL maintaining a minority position.
Overall, while Paytm acknowledges the potential financial impact of the RBI directive, it is actively working to comply with regulations and ensure minimal disruption to its services.
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