Hyderabad: Digital payments and services app Paytm is working and will continue to work as usual even after February 29, CEO Vijay Shekhar Sharma said on Friday.
The founder and CEO of One97 Communications Ltd (OCL), which owns the Paytm brand, on social media platform X, said the company is committed to serving the nation in full compliance. "To every Paytmer, Your favourite app is working, and will keep working beyond 29 February as usual (sic)," Sharma wrote on his social media handle.
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"Your favourite #Paytm app is working & will keep working beyond 29th Feb, 2024 as well," tweets our Founder and CEO @vijayshekhar. Read here! #PaytmKaro pic.twitter.com/CDcTyVuQGg
— Paytm (@Paytm) February 2, 2024
"For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it," Sharma further said.
The RBI has stopped Paytm Payments Bank from accepting deposits after February 29 following a comprehensive system audit and subsequent compliance validation reports revealing "persistent non-compliances".
Paytm customers need not to worry as it has said that the app is up and running. Paytm and its services continue to remain operational beyond February 29, as most of the services offered by Paytm are in partnership with various banks (not just associate banks).
Paytm has been informed that this does not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances.
According to Paytm, the company sees the RBI order to have an impact of Rs 300-500 crore on its annual operational profit as its customers will not be able to add money to their wallets, FASTag, etc.
The founder and CEO of Paytm said that the company will continue to decline and decrease the "dependency" on its associate bank and will see through by accelerating its partnership with other banks. He informed that the company had already started to work with other banks two years back and will now accelerate the plan to move to other bank partners.
"We are genuinely overwhelmed by the support that we have received from various banks, large banks of this country, and those who are already partners. More regional and large banks have reached out at a very senior level to say that they will be very happy to help us," Vijay said.
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