RBI directive impacts only Paytm Payments Bank, not Paytm App | Explained

New Delhi, February 2: Paytm, a leading player in QR and mobile payments in India, clarified that its app will continue to function beyond February 29 despite the Reserve Bank of India's (RBI) directive. Paytm emphasised that the directive affects only its associate bank and not the fintech company itself.

Vijay Shekhar Sharma, Paytm's founder and CEO, reassured users about the app's uninterrupted functionality, stating, "To every Paytmer, Your favourite app is working, will keep working beyond February 29 as usual. 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 serving 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."

Madhur Deora, president and Group CFO at Paytm, clarified that Paytm and Paytm Payment Bank were distinct entities and could not be considered as one. He emphasised the independence of Paytm Payments Bank, which operates with its own management team and board following banking regulations. Deora explained that Paytm, as a payments company, collaborates with various banks, not limited to Paytm Payments Bank, and will continue to expand its payments and financial services business in partnership with other banks.

The fintech company, in an exchange filing, further stated, "We would take this opportunity to clarify that as per banking regulations, Paytm Payments Bank Limited is run independently by its management and board. While OCL is allowed to have two board seats on the board of Paytm Payments Bank Limited, as a part of its shareholder agreement, OCL exerts no influence on the operations of Paytm Payments Bank Limited, other than as a minority board member and minority shareholder." 

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