Paytm CEO Meets Finance Minister amid RBI Restrictions

Following the Reserve Bank of India's (RBI) recent directive to halt certain services, Paytm CEO Vijay Shekhar Sharma sought government intervention, meeting Finance Minister Nirmala Sitharaman. However, sources familiar with the matter clarified that the government asserted no role in the issue. The directive led to a sharp decline in Paytm shares, though a minor rebound was observed on Tuesday.

During the brief 10-minute meeting, Sitharaman conveyed that Paytm must address concerns directly with the RBI and adhere to regulatory guidelines. Subsequently, Sharma engaged with RBI officials to discuss the regulatory hurdles. Last Wednesday, the RBI's order barred Paytm Payments Bank Ltd from accepting deposits or facilitating credit transactions after February 29, while reassuring customers of unrestricted access to their account balances.

Furthermore, the RBI terminated nodal accounts linked to Paytm's parent company, One97 Communications Ltd, and Paytm Payments Bank Ltd. Despite these developments, Paytm Payments Bank assured customers of the safety of their funds post the regulatory action, clarifying that while deposits would cease after February 29, the app's functionality would remain unaffected. As Paytm navigates these challenges, the company continues to prioritize customer trust and regulatory compliance.