Paytm holding talks with other banks to transfer payments bank biz: Sharma
The company's founder and CEO revealed that they are in touch with the RBI to solve issues concerning the bank’s customers
Paytm founder and Chief Executive Officer (CEO) Vijay Shekhar Sharma on Thursday said they are holding talks with some of their banking partners to transfer the business of Paytm Payments Bank (PPB).
“Many large banks have reached out to us offering support and we are overwhelmed. We will have to change our Virtual Payment Address (VPA) as we partner with other banks. The decision to change partner banks will happen in a few weeks. We are in discussion and these are yet to be completed,” Sharma said.
At the same time, Sharma also revealed that they are in touch with the Reserve Bank of India (RBI) to solve issues concerning the bank’s customers.
‘Reaching out to customers’
Meanwhile, Group president and COO Bhavesh Gupta said the company is addressing miscommunication with merchants and users. “We are reaching out aggressively to customers and will address miscommunication to Paytm users,” he said.
Gupta also said that the company has received multiple proposals to transfer nodal accounts from PPB. “We have proposals from multiple banks to move our nodal accounts. We are in the process of evaluating the best option,” he said.
RBI on January 31 imposed major business restrictions on Paytm Payments Bank including accepting fresh deposits and doing credit transactions after February 29. The RBI also barred Paytm Payments Bank from onboarding new customers.
Persistent non-compliance
The central bank said a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action.
No further deposits, credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime, RBI said.
The RBI directed the payments bank to settle all pipeline transactions and nodal accounts by March 15 and no further transaction shall be permitted thereafter.