In mid-April, the fintech company announced that it had begun transferring its customers to different partner banks for payment services, such as Axis Bank, HDFC Bank, SBI, and Yes Bank. This move followed the Reserve Bank of India’s decision in late January to restrict Paytm Payments Bank (PPBL) from accepting new deposits or conducting UPI transactions due to regulatory non-compliance. After this, Paytm teamed up with several banks to ensure smooth sailing despite the RBI’s strict measures. In the webinar, Sharma clarified that Paytm Payments Bank operates independently, stressing that neither he nor anyone else from One97 Communications is directly involved with the bank. It’s worth mentioning that Sharma stepped down from the bank’s board in February, and since then, the board has welcomed new faces. Additionally, just this month, Surinder Chawla, the CEO and MD of Paytm Payments Bank, tendered his resignation.
Paytm launched innovative sound boxes on April 22 that support UPI and credit card payments, designed and manufactured in India with enhanced features. These devices cater to merchants of various scales, signaling a commitment to local payment advancement. The transition to new payment system providers and compliance measures reflect Paytm’s proactive approach to regulatory changes. Vijay Shekhar Sharma highlighted the soundboxes’ suitability for India’s noise environment. Despite recent resignations, Paytm continues to evolve in fintech, emphasizing independence for Paytm Payments Bank and sustained dedication to facilitating seamless transactions.
