Paytm is bracing for a potential financial setback of ₹300 to 500 crore due to the Reserve Bank of India's (RBI) directive, restricting its subsidiary, Paytm Payments Bank (PPBL), from accepting new deposits starting in March. The fintech giant, in response, revealed plans to fully transition to alternative bank partners, excluding PPBL, to continue expanding its payments and financial services business. Paytm's Payment Gateway business, serving online merchants, will remain unaffected, catering to existing clients. Notably, the RBI order does not impact user deposits in savings accounts, Wallets, FASTags, and NCMC accounts, allowing continued use of existing balances.
Despite the directive's implications on PPBL, Paytm assured the continuity of OCL's offline merchant payment network services, including Paytm QR, Paytm Soundbox, and Paytm Card Machine. These services will operate seamlessly, allowing for the onboarding of new offline merchants. OCL's other financial services, such as loan distribution, insurance distribution, and equity broking, remain independent of PPBL and are expected to remain unaffected.
Paytm clarified that its founder, Vijay Shekhar Sharma, has not involved himself in margin loans or pledged any shares directly or indirectly owned by him. Additionally, Paytm Payments Bank Limited operates independently under its management and board. Although OCL holds two board seats as part of its shareholder agreement, it maintains a minority position, exerting no substantial influence on the bank's operations beyond its role as a minority board member and shareholder.
This strategic move aligns with Paytm's commitment to sustaining its growth trajectory by collaborating with alternative bank partners while mitigating the potential impact of the RBI directive on its annual earnings.
