Paytm CEO meets Sitharaman after RBI curbs on payments bank services
Last week, RBI ordered Paytm Payments Bank, a restricted bank that can take deposits but cannot lend, not to take any further deposits after February 29
Paytm founder-CEO Vijay Shekhar and other top executives of the company met Finance Minister Nirmala Sitharaman on Tuesday (February 6) to discuss various issues after the severe restrictions imposed upon Paytm Payments Bank (PPBL) by the Reserve Bank of India (RBI), reports said.
Company executives also met RBI officials on Monday (February 5) in efforts to reverse the regulator’s order to PPBL to stop accepting deposits after February 29.
It is not known what exactly the outcome of the meeting with the finance minister was, but the government seems to be indicating that RBI would make the decisions in the case. Sitharaman told TOI in an interview during the weekend, “It is for the regulator and the company to deal with each other.”
Paytm released a statement denying any investigation by the Enforcement Directorate (ED) on its parent company One97 Communications Limited (OCL), its associates, or its management.
“To address the recent misinformation, factual inaccuracies, and speculation, One97 Communications Limited would like to set out the company’s position and directly address rumours in the recent misleading media reports about the company and its associate Paytm Payments Bank Limited. This filing is done in the interest of transparency and protecting our reputation, customers, shareholders, and stakeholders from being influenced by unwarranted and speculative stories. We will continue to post such clarifications as required,” the company said in its press release.
The company’s statement added, “We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness. There are other stories in various media, including social media, which are spreading speculation and misinformation on the reasons for RBI action on Paytm Payments Bank. The recent direction from RBI is a part of the ongoing supervisory engagement and compliance process. For this action, we refer our stakeholders to the official press release of RBI dated January 31, 2024 and not rely on unofficial sources.”
Last week, RBI ordered Paytm Payments Bank, a restricted bank that can take deposits but cannot lend, not to take any further deposits or conduct credit transactions or carry out top-ups on any customers’ accounts, prepaid instruments, wallets, or cards for paying road tolls after February 29.