Paytm’s CEO, Vijay Shekhar Sharma, convened discussions with both the Reserve Bank of India (RBI) and Finance Minister Nirmala Sitharaman regarding the ongoing challenges confronting his company.
According to a report from the Economic Times, there’s a possibility that the RBI might provide clarification regarding the Paytm crisis, given the extensive user base of the fintech firm. Vivek Joshi, the financial services secretary, informed the website that the RBI had implemented restrictions to safeguard consumer interests, highlighting that Paytm failed to comply with regulatory requirements. He emphasized the importance for companies to adhere to compliance standards and respect the country’s laws.
This statement from the financial services secretary followed a request from the Enforcement Directorate and Financial Intelligence Unit to the RBI to share its findings on recent actions against Paytm Payments Bank. The PTI report indicated that both investigative bodies were examining potential violations under anti-money laundering laws concerning the payment gateway. Conversely, Paytm asserted that neither the company nor its founder were subjects of a money laundering investigation by central agencies.
In a separate development on Tuesday, Paytm CEO Vijay Shekhar Sharma engaged in discussions with the RBI and Finance Minister Nirmala Sitharaman regarding the company’s current challenges. As per Reuters, Sharma, along with several Paytm officials, met with the RBI to discuss strategies for addressing regulatory concerns. This meeting coincided with Paytm’s request for an extension of the February 29 deadline. The company sought clarity from the central bank regarding the transfer of licenses for its wallet business and the FASTag digital highway toll payment service.
