Embattled Paytm’s Vijay Shekhar Sharma steps down from bills financial institution board in wake of RBI crackdown

Indian virtual bills company Paytm mentioned on Monday Vijay Shekhar Sharma would step down as non-executive chairman and board member of its bills financial institution’s unit, because the embattled corporate overhauls its board within the wake of a central financial institution clampdown.

Paytm prone to spouse with 4 banks for enabling UPI transactions, resources say

TroubledPaytm is prone to spouse with Axis Financial institution, HDFC Financial institution, State Financial institution of India and Sure Financial institution for processing transactions by way of the preferred unified bills interface (UPI), two resources acutely aware of the improvement mentioned.

The central financial institution has requested Paytm Bills Financial institution, the banking unit of Paytm to wind down its industry by way of March 15, resulting in disruption for the preferred fee app.

UPI is India’s real-time bills device, operated by way of the Nationwide Bills Company of India (NPCI), that permits customers to switch cash throughout banks.

The Reserve Financial institution of India (RBI), ultimate week, requested the NPCI to inspect a request from Paytm to develop into a 3rd birthday celebration software supplier and to facilitate four-to-five banks to behave as provider suppliers for it.

“Talks to onboard banking companions are on, and Paytm desires to begin this procedure with massive banks that experience the technological bandwidth to deal with massive volumes seamlessly,” one of the most resources mentioned.

The individuals didn’t wish to be known as they aren’t accepted to talk with the media.

HDFC Financial institution, Sure Financial institution, SBI, Paytm didn’t in an instant reply to Reuters’ emails in the hunt for remark. Spokespersons for Axis Financial institution and NPCI declined remark.

“Paytm is prone to onboard Axis Financial institution as a banking spouse first, after which rope in additional banks,” the second one supply mentioned.

The NPCI will take a few month’s time to test the financial institution’s generation and comparable infrastructure, the supply mentioned.

Paytm is the third-largest app for UPI bills within the nation, processing 1.6 billion per month transactions, in keeping with knowledge to be had at the NPCI website online. PhonePe and Google Pay are the 2 biggest.

Paytm’s customers will migrate to an up to date UPI deal with of the spouse financial institution, the second one individual mentioned.

“Any industry with Paytm will most effective occur as according to RBI’s regulatory orders,” Prashant Kumar, leader govt officer at Sure Financial institution mentioned on Monday in an previous interview.

“If there’s readability at the dangers concerned and if the industry makes business sense to us, we’ve got the functions.”

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