'We will...': Paytm CEO Vijay Shekhar Sharma breaks silence on RBI curbs on Payments Bank

A day after the Reserve Bank of India (RBI) put restrictions on Paytm Payments Bank (PPB), CEO Vijay Shekhar Sharma said that the company will work with various other banks and not PPB. The central bank on Wednesday barred PPB from accepting deposits or top-ups in any of its key products. Shares of Paytm crashed by 20 per cent to Rs 609 after the curbs. PPB is an associate of Paytm.

In a series of posts on X (formerly Twitter), Paytm shared updates from a conference call with its founder and CEO Sharma, where the company said it would “continue to decline & decrease dependency on PPB”.

"OCL (One 97 Communications Limited) already works various with other banks and Paytm Payments Bank was one of the key banks. From here on we are clear we will work with various other banks and not PPB," The company tweeted quoting CEO Sharma.

“Two years ago, embargo was placed earlier on on-boarding new customers, we had already started to work with banks, and we will continue to decline & decrease dependency on PPB,” Sharma said.

"OCL already works various with other banks and Paytm Payments Bank was one of the key banks. From here on we are clear we will work with various other banks and not PPB," says Founder and CEO @vijayshekhar

— Paytm (@Paytm) February 1, 2024

One97 Communications Ltd (OCL), which owns Paytm brand, holds 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary. RBI has ordered PPBL to settle all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) by March 15, 2024 and no further transactions would be permitted thereafter. On March 11, 2022, RBI had barred PPBL from onboarding new customers with immediate effect.

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