“It is action taken by the regulator. They regulate the banks. The government has had nothing to do until now when it comes to the actions taken against Paytm. And we believe that RBI must have taken the action in the overall interest of the consumer and the economy,” Joshi told PTI in an interview.
Banks acquiring Paytm merchants will have to do fresh KYC with all the merchants and will be rigorous in the process due to RBI concerns over real or fake accounts.
The Paytm Payments Bank episode has brought compliance to the forefront, emphasizing the necessity for companies to take regulatory matters seriously.
Paytm CEO Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman to discuss Paytm’s concerns on Fastag ban, adding money to Paytm Payments Bank accounts, and retaining @paytm for app users and merchants. Sharma also sought an extension of the February 29 deadline and explained the efforts to meet RBI compliances.
To counter such concerns, the company is sending sales staff directly to customers ranging from roadside snack sellers to big retail outlets to ask them to use Paytm’s partner banks so that they can continue to receive payments, more than 40 shopkeepers and several company sales staff said. Read more:
Post acquisition, Kuvera founders, team, and product will continue to operate independently while working closely with CRED leadership to scale its network, ecosystem, brand, and distribution, CRED said in a statement.
Reports of UPI outage have poured in from various places as users struggle with digital payments. Major platforms like Google Pay, PhonePe, and BHIM have been reportedly affected, along with server issues in banks.
Paytm crisis: Bernstein assumes a reasonably smooth transition in Paytm’s partnership from Paytm Payments Bank to other bank(s) including acquisition of required licenses (e.g. TPAP for UPI) and therefore expects a limited long-term impact. Shares of the crisis stricken fintech rebounded on Tuesday after analysts highlighted value in its core business.
According to the shareholding pattern for the December quarter, mutual fund ownership in Paytm increased from 2.79% to 4.99% quarter-on-quarter. FII holding also saw a rise of 280 basis points to reach 63.72%, while retail ownership, defined by those holding up to Rs 2 lakh, witnessed a 457 basis points increase to reach 12.85%.
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