“Paytm’s Vijay Shekhar Sharma Addresses Employees Amid RBI Restrictions, Assures No Layoffs”
In the midst of the crisis triggered by the Reserve Bank of India (RBI) restricting Paytm Payment Bank Ltd (PPBL) from offering key banking services, Paytm’s CEO Vijay Shekhar Sharma held a virtual town hall with employees, aiming to address concerns and quell rumors.
In the midst of the crisis triggered by the Reserve Bank of India (RBI) restricting Paytm Payment Bank Ltd (PPBL) from offering key banking services, Paytm’s CEO Vijay Shekhar Sharma held a virtual town hall with employees, aiming to address concerns and quell rumors.
The RBI order limits PPBL from providing major banking services, including taking deposits, handling FASTag transactions, and credit transactions. Facing uncertainty, Vijay Shekhar Sharma assured Paytm employees that there would be no layoffs, emphasizing that they are a vital part of the Paytm family. During the town hall, he was joined by Paytm’s President and COO Bhavesh Gupta, as well as the CEO of PPBL, Surinder Chawla.
“We are not completely sure of things… like what exactly went wrong. But we will figure out everything soon. We will reach out to the RBI to see what can be done,” stated Sharma, acknowledging the uncertainty surrounding the situation.
Despite rumors of an Enforcement Directorate (ED) probe, the company denied any ongoing investigation in the wake of the RBI’s actions. The stock exchanges responded to the crisis by reducing daily trading limits for Paytm from 20% to 10%, following a substantial $2 billion decline in the company’s stock.
Addressing employee concerns, Sharma took a confident and assuring tone, described by one employee as a “morale booster call.” Discussions during the town hall focused on job security and potential bank tie-ups, with Sharma noting that many banks have expressed interest in assisting Paytm.
Additionally, Sharma emphasized the company’s commitment to compliance moving forward, stating that “the company will focus on being extremely compliant.”
Amidst these developments, team heads held closed-door meetings with their respective employees to discuss details about the RBI order. Employees were tasked with gathering comprehensive data on the current status of users, accounts, and transactions.
The Confederation of All India Traders (CAIT) also weighed in on the situation, advising businesses to consider alternatives to Paytm for financial transactions. CAIT expressed concerns that the RBI restrictions on Paytm could disrupt financial transactions for a large number of small traders, vendors, hawkers, and women who heavily rely on the platform.
As Paytm navigates these challenges, the company remains optimistic about finding a resolution with the RBI and adapting to the evolving regulatory landscape.
Sources By Agencies
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