New Delhi, In the wake of the Reserve Bank of India (RBI) halting Paytm Payments Bank from accepting deposits beyond February 29, Paytm’s founder and CEO, Vijay Shekhar Sharma, assured that the company will continue its operations with other banks.
Sharma, speaking to CNBC-TV18, stated, “Now onwards, will only work with other banks & not Paytm Payments Bank. We are overwhelmed by the support we have received from large banks in the country.” He further clarified that the company’s marketing and financial services business remain unaffected due to RBI directions, emphasizing that the firm cannot foresee specific details about the regulatory actions taken.
The announcement follows a significant dip in Paytm’s stock value by 20% in opening trade after the RBI imposed restrictions. The stock plummeted to a six-week low of 609 rupees, resulting in a loss of approximately $1.2 billion in market value for the company, also known as One 97 Communications.
As per a Reuters report, Sharma, who holds a 19.4% stake in the company, experienced a personal loss of about $233 million on Thursday due to the share price decline. He retains a 51% ownership of Paytm Payments Bank.
Paytm, a key player in the Indian digital payments sector, competes with entities like Walmart’s PhonePe and Google’s GPay. Its platform facilitates fund transfers, bill payments, and digital wallet usage across the nation.
Sharma, renowned for launching Paytm two decades ago, faced scrutiny in recent times as the company’s stock performance attracted attention. Notably, Paytm witnessed exponential growth in 2016 after the Indian government’s demonetization move, boosting digital payment adoption.
Despite the recent challenges and regulatory constraints, Paytm’s journey continues, marked by its strategic partnerships and evolving role in India’s digital financial landscape.
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