Paytm CEO Vijay Shekhar Sharma Meets RBI Officials Amid Regulatory Action

Paytm CEO Vijay Shekhar Sharma and officials met RBI to address regulatory concerns over the halt on new customer onboarding and key banking services.

  • Paytm CEO Vijay Shekhar Sharma and officials met RBI to address regulatory concerns over the halt on new customer onboarding and key banking services.
  • Paytm requested an extension of the February 29 deadline during the meeting with RBI, seeking clarity on licence transfers for the wallets business and FASTag.
  • Founders’ appeal to RBI and finance minister urging reconsideration of regulatory action against Paytm Payments Bank also highlighted, emphasizing the need for a window to address compliance issues.

Amidst the ongoing crisis, Paytm’s CEO Vijay Shekhar Sharma engaged in discussions with Reserve Bank of India (RBI) officials regarding the regulatory concerns surrounding the fintech company. The halt on new customer onboarding and key banking services, effective after February 29, prompted Paytm to seek clarity and potential extensions during the meeting.

The meeting between Paytm officials and RBI did not yield immediate resolutions, with no concrete measures decided upon by the regulator. Paytm also expressed concerns regarding licence transfers for its wallets business and FASTag services, seeking clarity on regulatory directives.

Simultaneously, a group of founders advocated for a reconsideration of the regulatory action against Paytm Payments Bank, addressing a letter to RBI Governor Shaktikanta Das and Finance Minister Nirmala Sitharaman. The founders emphasized the broader implications on the fintech ecosystem and urged for a timeframe to rectify compliance issues.

In light of recent clarifications by Paytm, including assertions of no ongoing probes by Enforcement Directorate (ED) or allegations of Foreign Exchange Management Act (FEMA) violations, the company’s shares witnessed a positive trajectory. After five consecutive sessions of decline, Paytm shares rose significantly, underscoring potential market confidence in the company’s resolution efforts.