Paytm CEO Vijay Shekhar Sharma Says App Will Continue To Work Beyond February 29

Vijay Shekhar Sharma wrote in X platform, "For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance"

Vijay Shekhar Sharma, founder and CEO of One97 Communications Ltd (OCL), on Friday said that Paytm payments and services app is working and will continue to work as usual even beyond February 29. Sharma on social media platform X said the company is committed to serving the nation in full compliance. "To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual," Sharma said.

"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 mentioned.

The Reserve Bank of India (RBI) on Wednesday in a circular barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024.

One97 Communications Ltd (OCL), the parent firm of Paytm, holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.

The top management of the fintech firm in an earning call on Thursday said they are working on a migration plan for PPBL, wallet, FASTag etc users with other banks. The company sees the RBI order to have an impact of Rs 300-500 crore on its annual operational profit as its customers will not be able to add money to their wallets, FASTag etc.

Separately, the company informed that its offline merchants network offering and device business such as Paytm Soundbox, EDC, QR are not impacted by the RBI's order to its associate bank. The company will continue onboarding merchants to its platform.

Paytm clarified that the RBI directive also does not impact user deposits in their savings accounts, wallets, FASTags and NCMC (National Common Mobility Card) accounts, and they can continue to use the existing balances.