Paytm, the digital payments and services app, will remain operational without interruption beyond February 29, reassured its CEO Vijay Shekhar Sharma on Friday.
The founder and CEO of One97 Communications Ltd (OCL), the parent company of the Paytm brand, said on the social media platform X that the company is dedicated to serving the nation while ensuring full compliance.
“To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual,” Sharma said.
Effective from February 29, 2024, RBI has barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, including prepaid instruments, wallets, and FASTags, among others.
One97 Communications Ltd (OCL) holds a 49 percent stake in Paytm Payments Bank Ltd (PPBL), categorizing it as an associate of the company rather than a subsidiary.
“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,” Sharma said.
During an earnings call on Thursday, the Paytm top management announced that they are working on a migration plan for PPBL, wallet, FASTag, and other users to transition to other banks.
The company sees the RBI order will impact its annual operational profit by Rs 300-500 crore, as customers will no longer be able to add money to their wallets and FASTags.