In the wake of challenges faced by Paytm Payment Bank Ltd (PPBL) due to RBI restrictions, founder Vijay Shekhar Sharma addressed concerns during a virtual town hall with employees.
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No Layoffs, Strong Support from Banks
Emphasizing job security, Sharma assured employees that there would be no layoffs, and numerous banks were extending support to navigate the current situation.
Uncertainty and Future Plans
While uncertain about the exact issues leading to the RBI restrictions, Sharma pledged to investigate and collaborate with the RBI to resolve the matter. He highlighted the company’s commitment to compliance in the future.
Employee Morale and Company Focus
Confident Tone and Morale Boost
According to a senior employee, Sharma maintained a confident and reassuring tone during the call, addressing concerns about job security and clarifying the company’s stance.
Commitment to Compliance
Sharma conveyed the company’s commitment to stringent compliance moving forward, acknowledging ongoing changes within the organization over the past six months to adhere to regulatory norms.
Team Meetings and Information Gathering
Team heads held closed-door meetings post the RBI order, focusing on gathering detailed information about users, accounts, and transactions to understand the current status.
External Impact and Response
Stock Exchange Restrictions and Market Reaction
Following the RBI restrictions, stock exchanges imposed daily trading limits on Paytm, resulting in a significant stock value decrease. The company denied facing an Enforcement Directorate (ED) probe amid the RBI action.
Trader Advisory to Switch Payment Apps
The Confederation of All India Traders (CAIT) issued an advisory suggesting businesses switch from Paytm to other payment applications due to the RBI restrictions. CAIT expressed concerns about potential financial disruptions for users, especially small traders, vendors, hawkers, and women who heavily rely on Paytm for transactions.