Overview:
- Paytm anticipates a potential earnings hit of ₹300 to 500 crore due to RBI’s directive on Paytm Payments Bank (PPBL).
- Paytm plans to shift entirely to other bank partners, excluding PPBL, to continue expanding its payments and financial services business.
Response to RBI Directive:
- Paytm, through its parent company One97 Communications Ltd. (OCL), will collaborate with other banks, excluding PPBL.
- OCL aims to continue its journey by expanding payments and financial services only in partnership with other banks.
Services Affected:
- Paytm’s Payment Gateway business for online merchants will continue without disruption.
- User deposits in savings accounts, Wallets, FASTags, and NCMC accounts remain unaffected.
- Offline merchant payment services, including Paytm QR and Card Machine, will continue seamlessly, with new merchant onboarding unaffected.
- Other financial services like loan distribution, insurance, and equity broking are independent and unaffected by the RBI directive.
Independence of Paytm Payments Bank:
- Paytm founder, Vijay Shekhar Sharma, has not engaged in margin loans or pledged any shares.
- PPBL operates independently under its management and board, with OCL holding a minority position, exerting no significant influence.
In summary, Paytm is responding to the RBI directive by shifting its focus to other bank partners while ensuring minimal impact on existing services and user accounts. The company emphasizes the independence of Paytm Payments Bank and its commitment to complying with regulatory directives.
