The news of the Reserve Bank of India’s (RBI) decision to bar Paytm Payments Bank from taking on new customers due to certain violations had caused concerns among Paytm app users regarding the future functioning of the popular digital payments platform. However, Paytm founder Vijay Shekhar Sharma has now come forward to allay such worries and assure users that the app will continue operating without any disruptions even after February 29.
In a statement shared on his Twitter-like social media profile called X, Sharma said “To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support.” He expressed confidence that the company will be able to resolve the issues with the banking regulator and stressed that Paytm is fully committed to complying with all rules.
Sharma’s statement aimed to boost the confidence of Paytm’s large customer base. The digital payments pioneer has over 350 million users in India who rely on its services for a variety of financial transactions like sending and receiving money, paying bills, recharging phones, booking tickets, buying gold and more. Any uncertainty regarding the app’s future could have created panic among users. However, the founder has made it clear that there is no reason for users to worry and discontinue using the Paytm app.
The RBI’s action against Paytm Payments Bank came as a major setback for one of the leading fintech firms in India. While the central bank did not disclose the exact reasons for the restrictions, it is believed to be related to certain non-compliance issues with Know Your Customer (KYC) and other technology-related norms. In response, Paytm had assured that it is taking necessary steps to comply with RBI’s directives, address the concerns and engage in discussions with the regulator.
Meanwhile, Sharma has stressed that this challenge provides an opportunity for Paytm to enhance its systems and processes. In his statement on X, he said “This is an opportunity for us to come out better, stronger, abler, and more capable for the regulator’s eye and we are going to make sure that we will get out of this situation.” He expressed optimism about India’s continued progress in digital payments innovation and financial inclusion with Paytm playing a leading role.
The RBI’s order was also one of the major factors that contributed to a steep fall in Paytm’s stock price over the last two days. Investor sentiment was impacted due to uncertainty over the impact of the restrictions on Paytm’s business model. However, Sharma’s assurances have provided some relief to both customers and shareholders. He has reiterated Paytm’s commitment to address the compliance issues and ensure smooth functioning of its services. Only time will tell how quickly the company is able to resolve the issues with RBI and get the restrictions lifted. But for now, Paytm users can heave a sigh of relief and continue using the popular app without disruption.
In conclusion, while RBI’s recent order against Paytm Payments Bank due to non-compliance came as a big blow, founder Vijay Shekhar Sharma has stepped in swiftly to dismiss users’ concerns regarding the app’s continuity. He has assured that Paytm will keep operating smoothly beyond February 29 as the company works towards satisfying the banking regulator’s directives. This statement aims to boost confidence among Paytm’s vast customer base during a challenging time for the digital payments leader.
