February 5, 2024Anmol Nagpal

There would be no layoffs amid crisis: Vijay Shekhar Sharma

Paytm founder Vijay Shekhar Sharma has reportedly assured employees that there would be no layoffs in the company and that they are engaging with RBI and working with other banks for partnership.

Source: ANI

According to a media report, Sharma said in a virtual town hall with employees of Paytm Payments Bank (PPBL) that many banks are helping them.

Source: X

“You are a part of the Paytm family, and there is nothing to worry about,” he said in the town hall on Saturday.

Source: @vijayshekhar Twitter handle

Apart from Sharma, Paytm President and COO Bhavesh Gupta and PPBL CEO Surinder Chawla were also present in the town hall.

Source: Paytm

Sharma said that they are not completely sure of things “like what exactly went wrong”.

Source: Paytm

Sharma assured the employees that they will figure everything out soon. He said they will reach out to RBI to see what can be done in the virtual town hall attended by 800-900 employees.

Source: Paytm

On January 31, the RBI directed PPBL to stop onboarding of new customers with immediate effect following a compliance validation report by external auditors.

Source: Paytm

RBI asked Paytm Payments Bank to stop further deposits, credit transactions, top-ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards etc after February 29.

Source: Paytm

However, users can utilise their balances or withdraw the money from their accounts without any restrictions.

Source: Paytm

Copthall Mauritius Investment and Ghisallo Master Fund acquired the offloaded shares, holding a 1.19% and 0.67% stake, respectively.

Source: Paytm

The nodal accounts of Paytm parent One97 Communications and Paytm Payments Services must be terminated at the earliest, and all pipeline transactions and nodal accounts must be completed by March 15.

Source: Paytm