Paytm Crisis: A new twist in the turmoil that has been going on in fintech firm Paytm for a month came on Monday, when Paytm founder Vijay Shekhar Sharma resigned from the post of Chairman of Paytm Payments Bank. Along with this, Vijay Shekhar Sharma also left the membership of PPBL board.
It has been a very bad month for Paytm Payments Bank, the banking arm of the leading fintech firm Paytm. On January 31, 2024, the Reserve Bank of India (RBI) took action on PPBL, after this the troubles for the company kept increasing every day and now Paytm Payments Bank Chairman Vijay Shekhar Sharma also resigned (Vijay Shekhar Sharma Resigns). Is. Let us understand in 10 points what happened in the company within a month?
1- On the last day of the month of January i.e. 31 January 2024, RBI issued an order, in which it was said that the services of Paytm Payments Bank (PPBL) will be banned from 29 February. That is, after this order, new deposits will not be accepted in Paytm Bank and credit transactions or topups in customer accounts, wallets, FASTag, NCMC cards will be stopped.
2- Immediately after the RBI order, i.e. on February 1, the day of the interim budget, its impact was visible on the company’s shares and they fell by 20 percent. After the RBI ban, there was panic among the investors and the company management had to come forward in a hurry. An investors call was held and confidence was expressed that the company is continuously in talks to address the concerns of the lending partners and the matter will be resolved soon.
3- Amidst the panic among Paytm Payments Bank users after the RBI ban, the Confederation of All India Traders (CAIT) issued an advisory advising traders and businessmen to switch from Paytm Payment Bank to the new platform. .
4- Paytm founder Vijay Shekhar Sharma assured investors during a town hall that the matter will be resolved soon and he is talking to many other banks to continue the services smoothly after the ban action. Along with this, he refused any kind of layoff (Paytm Layoff) amid this crisis.
5- Vijay Shekhar Sharma urged the Reserve Bank of India and the Finance Ministry to reconsider this matter and also met and talked with Finance Minister Nirmala Sitharaman on this matter, but the Finance Minister referred it to the banking regulator. Termed the action taken by.
6- A statement was issued by RBI in this matter. Central bank Governor Shaktikanta Das said that all the actions of the regulator are with a view to ensuring systemic stability and protecting the interests of depositors and customers and action on Paytm Payments Bank has also been taken under this.
7- Amidst the crisis of ban on the services of Paytm Payments Bank, the company’s troubles increased further when it came to light that it was on the radar of ED and it further increased when the government started an internal investigation into the violation of FEMA rules in Paytm. Did it.
8- Amidst all this, RBI Governor Shaktikant Das bluntly said that the central bank has taken the action against Paytm Payments Bank after thorough investigation and in the interest of the customers and there is no question of reviewing this decision. Get up. However, after this a relief news also came, when RBI extended the deadline of ban imposed on PPBL services from 29th February to 15th March. Whereas PPBL shifted its nodal account to Axis Bank. After this there was a rise in the shares of the company.
9- The Reserve Bank said that it has advised NPCI to examine the request of One97 Communication Limited to become a third-party application provider for the UPI channel, so that Paytm UPI app services can be continued.
10- On January 26, 2024, suddenly Paytm Payments Bank Chairman Vijay Shekhar Sharma resigned from the company board to enable the restructuring of the board. After this, a statement was issued by One 97 Communications saying that the process of appointing a new chairman will be started soon.
