Mumbai, February 5: RBI took action against Paytm Payments Bank and stopped the its services due to continuous non-compliance. After that, Paytm announced that the app would keep working the same way as usual after February 29, 2024. Paytm founder and CEO Vijay Shekar Sharma also said the company is trying to figure out a solution with the central bank's diktat soon.

Paytm CEO Vijay Sharma assured everyone that the platform will keep working as usual beyond February 29. According to the report by Hindustan Times, Paytm's founder and CEO also assured its employees that there would not be any layoffs as the company continued to struggle after RBI's restrictions on Paytm Payments Bank Limited (PPBL). The Reserve Bank of India restricted all the major banking services such as taking deposits, NCMC cards, wallets, instruments, and FASTags. Brighter AI: Apple Plans To Buy German AI Startup To Strengthen Its Vision Pro, Says Report.

According to the report by Moneycontrol, Vijay Shekhar Sharma said during a virtual town hall with employees of PPBL on February 3, "You are a part of the Paytm family, and there is nothing to worry about. Many banks are helping us". He further added, "We are not completely sure of things…like what exactly went wrong. But we will figure out everything soon. We will reach out to the RBI to see what can be done".  

The fintech company relied on its Paytm Payments Bank for many of its services and products, and how it is trying to partner with other banks to grapple with merchant bank account transfer, stock price stability and conversation with users. The company's shares suffered due to the decision taken by the central bank. The report also mentioned that the stock exchanges have cut the daily trading limits for "digital payments" from 20% to 10% due to the "$2 billion rout". 

The report highlighted that one of the Paytm employees said that the CEO Vijay Shekhar Sharma took a confident and assuring tone when speaking to the company's employees in his direct address after the RBI diktat on January 31. Another senior employee also said it was a moral booster call to cut the rumours of layoffs. The employee added that most of the talks were about the job security and bank tie-ups. Tesla and SpaceX Board Members Aware of Elon Musk’s Illegal Drug Use, Says Report.

On the other hand, the company said the people (customers) were not scared, but it expected RBI to say something instead of outright banning. Besides, the Confederation of All India Traders (CAIT) said that the users following the bank on the services of Paytm Payments Bank should take proactive measures to protect funds and ensure uninterrupted financial transactions, as RBI's restrictions could lead to financial disruptions to such people.

(The above story first appeared on LatestLY on Feb 05, 2024 11:45 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website