'I Or Anyone From OCL Have No Connection With Payments Bank': Paytm CEO Sharma
On Jan. 31, the central bank imposed stringent curbs on Paytm Payments Bank, directing it to not accept any further credit into its customer accounts and wallets after March 15.
Vijay Shekhar Sharma, founder and chief executive officer of Paytm, on Monday, said that he or anyone from One97 Communications Ltd. have no connection with Paytm Payments Bank. Sharma was responding to media queries during a webinar for the launch of Soundbox and credit card for UPI payments.
He also said for the payments bank, there's now an independent board that's taking care of everything and they have full faith in their capability.
Sharma said this in response to queries raised on OCL's connection with Paytm Payments Bank and the bank's future, following a clampdown by the Reserve Bank of India. On Jan. 31, the central bank imposed stringent curbs on Paytm Payments Bank, directing it to not accept any further credit into its customer accounts and wallets after March 15.
According to OCL's report for FY23, it holds 49% of the paid-up share capital of Paytm Payments Bank, while the rest is with Sharma.
NDTV Profit previously reported that the action was primarily taken amid concerns over inadequate know-your-customer procedures, which led to transactions worth crores of rupees.
After the fiasco, Sharma stepped down from the bank’s board and a new, independent team was constituted to ensure arm’s length distance between the operations of Paytm Payments Bank and its parent.
On March 1, OCL and Paytm Payments Bank agreed to discontinue various inter-company agreements, according to an exchange filing.
The new board of the bank comprised four new appointments along with Arvind Kumar Jain, independent director and former ED of Punjab and Sind Bank; and Surinder Chawla, MD and CEO of Paytm Payments Bank. Chawla stepped down on April 9.
Responding to questions on merchants' migration, Sharma said that the process has been completed and all merchants are now live on Yes Bank Ltd.
NDTV Profit previously reported that Yes Bank acquired majority merchant accounts and all the @paytm handles were then shifted to that of the bank.
He added that the company's co-lending resumed automatically and in due course, it would give more updates on it.
"We remain committed to enhance UPI-based payment system," Sharma said. "There is a big opportunity in card-based payment acquiring," he added.