The Paytm chief government was advised the federal government has no function to play in reference to the most recent RBI restrictions when he went to satisfy Finance Minister Nirmala Sitharaman yesterday, mentioned individuals aware of the matter.
Vijay Shekhar Sharma is in fire-fighting mode after the Reserve Financial institution of India final week requested Paytm to cease its widespread digital pockets, deposits and credit score merchandise.
Paytm shares had tanked over 40% since then, rebounding solely this Tuesday.
Mr Sharma’s assembly with Ms Sitharaman lasted for 10 minutes and he was advised the federal government has no function to play on this matter, mentioned authorities sources.
Paytm has been requested to kind out the difficulty with RBI and adjust to their tips, they added.
Mr Sharma additionally met RBI officers yesterday to debate the regulatory considerations, sources mentioned.
The RBI barred Paytm Funds Financial institution Ltd final Wednesday (January 31) from accepting deposits or permitting credit score transactions, or top-ups, in buyer accounts or pay as you go devices – comparable to wallets and FASTags – linked to these accounts, after February 29. Nonetheless, clients will have the ability to make the most of balances from their accounts with none restrict, the RBI order mentioned.
The RBI has additionally terminated the nodal accounts of Paytm’s dad or mum firm, One97 Communications Ltd, and Paytm Funds Financial institution Ltd.
Paytm Funds Financial institution has assured its clients that their cash is “protected”, however they will not have the ability to deposit cash of their accounts or wallets after February 29. However the app will hold working past that as typical, Mr Sharma has mentioned.