“To every Paytmer,” Sharma wrote, addressing the platform’s user base directly. “Your favourite app is working, will keep working beyond 29th February as usual.”
In a severe blow, the Reserve Bank of India (RBI) issued a notice on Wednesday barring Paytm Payments Bank from providing banking services after February 29, citing compliance issues. Neither the central bank nor Sharma disclosed the exact reason for which the bank faced such stringent penal action.
ETtechFollowing this, the company has been assuring users that all services tied to Paytm Payments Bank will be transferred to other lenders, and services will not be disrupted from March 1.”I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance,” his post read.
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Sharma expressed confidence in India’s continued progress in the digital finance sector. “India will keep winning global accolades in payment innovation and inclusion in financial services,” he stated, positioning Paytm as a key driver of this growth.
ETtechIn an analyst call on Thursday, Sharma said, “This is an opportunity for us to come out better, stronger, abler, and more capable for the regulator’s eye and we are going to make sure that we will get out of this situation.”
The leadership of One 97 Communications, an associate company of the bank, alluded in the call that issues around setting up controls regarding compliance and technology could have attracted penal action by the regulator.
Read our in-depth coverage on the Paytm crisis: