New Delhi: Paytm founder Vijay Shekhar Sharma addressed employee concerns during a virtual town hall, assuring them that there will be no layoffs despite the ongoing crisis following RBI restrictions on its payment bank arm.
The fintech giant has been grappling with limitations imposed by the Reserve Bank of India (RBI) on Paytm Payment Bank Ltd (PPBL), impacting its ability to offer several banking services. This has led to uncertainties and anxieties among employees.
During the hour-long session with nearly 900 employees, Sharma acknowledged the challenges but emphasized the company’s active engagement with the RBI to resolve the issues. He reassured the workforce, stating, “You are part of the Paytm family, and there is nothing to worry about.”
The RBI’s restrictions have prompted Paytm to explore partnerships with other banks to overcome hurdles related to merchant bank account transfers, user communication, and stock price volatility. Following a significant drop in its market valuation, stock exchanges have lowered the daily trading limit for Paytm shares.
While ruling out a direct rescue, State Bank of India (SBI) offered assistance to affected customers, hinting at potential collaborations. ICICI Bank is also seen as a possible partner for Paytm.
Striving to boost employee morale, Sharma emphasized the company’s commitment to compliance and addressing job security concerns. He adopted a confident and reassuring tone throughout the session.
Meanwhile, the Confederation of All India Traders (CAIT) issued an advisory urging brick-and-mortar businesses to shift from Paytm to other payment platforms due to the RBI restrictions. This aims to minimize potential financial disruptions for small traders and vendors who rely heavily on Paytm.
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