RBI action on Paytm: CEO Vijay Shekhar Sharma calls it a 'speed bump'

A day after RBI imposed strict curbs on Paytm Payments Bank, stopping almost all services after Feb 29, Paytm CEO Vijay Shekhar Sharma, on a conference call, called it 'speed bump'

"On 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," said Paytm founder and CEO Vijay Shekhar Sharma.

“We have been working with our various partners. Equity and Insurance are unaffected as they do it independently. Lending has no connection with Paytm Payments Bank," said President & COO, Bhavesh Gupta.

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Specifically on the issue of FASTag Bhavesh Gupta said, "There are a set of products that the Paytm app offers to users, some products like FASTag are already distributed by other banks and will continue."

RBI's move on Paytm Payments Bank

In stringent action against Paytm Payments Bank (PPBL), the Reserve Bank of India on Jan 31st, 2024 directed the lender to stop accepting deposits or top-ups in in customer accounts, wallets, FASTags and other instruments after February 29. However, any balance on Paytm wallet, payments bank account, FASTags etc, can be withdrawn or utilised.

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Also, any interest, cashbacks, or refunds may be credited back to customers anytime.

The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement. On March 11, 2022, RBI had barred PPBL from onboarding new customers with immediate effect.

The Paytm stock crashed 20% on opening, reacting to RBI's directives.