The Paytm app will continue to work beyond February 29, founder Vijay Shekhar Sharma said in a message to Paytm users two days after the RBI’s action against Paytm Payments Bank. The entrepreneur also added that “for every challenge, there is a solution”.
In a major action against Paytm Payments Bank (PPBL), the Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts, popular digital wallets or FASTags from customers after February 29, raising worries over revenues from the company's main payments business.
“Your favourite app is working, will keep working beyond 29 February as usual,” Sharma posted on X in an attempt to calm the nerves of Paytm app users.
“I, with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance.”
“India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it,” he said.
The RBI, in a statement, has said its directions to Paytm follow persistent non-compliance and continued material supervisory concerns. On March 11, 2022, the RBI had barred PPBL from onboarding new customers with immediate effect.
Shares of Paytm tumbled 20 per cent for the second straight day on Friday. Paytm shares were at Rs 487, their lowest in more than a year, at the bottom of an exchange-imposed trading band for the second day in a row. Shares of the company are now down 36 per cent so far this week.
Vijay Shekhar Sharma, 45, is the son of a schoolteacher. He has said in the past that he learned English by listening to rock music.
He was ranked India's youngest billionaire at the age of 38.
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