Paytm’s CEO Meets Nirmala Sitharaman Amid Ongoing Crisis: Report

The high-level meeting occurred after Sharma and a few Paytm officials discussed with the RBI to address regulatory concerns

Paytm’s founder and chief executive officer, Vijay Shekhar Sharma, reportedly met Union Finance Minister Nirmala Sitharaman on February 6 to discuss the ongoing crisis involving the company's banking arm, Paytm Payment Bank, following the Reserve Bank of India (RBI) curbs, according to a news agency ANI report.

The high-level meeting occurred after Sharma and a few Paytm officials discussed with the RBI to address regulatory concerns. As per a Reuters report, the central bank listened to the fintech giant's presentation without providing any assurances.

Previously, there were reports of the Enforcement Directorate being involved in the case investigation; however, the company stated that it submitted a specific clarification on Sunday, firmly refuting any investigation by the Enforcement Directorate regarding OCL, our associates, and our management.

"We have since seen additional media reports making baseless speculations about investigations of the company or its associate Paytm Payments Bank Limited (PPBL) for violation of foreign exchange rules," it said. In addition, they also noted that Paytm will continue to post such clarifications as and when required.

In its release, the company said, "To address the recent misinformation, factual inaccuracies, and speculation, One97 Communications Limited (OCL / Paytm / Company) would like to set out the company's position and directly address rumours in the recent misleading media reports about the company and its associate, Paytm Payments Bank Limited (PPBL / Bank). This filing is done in the interest of transparency and protecting our reputation, customers, shareholders, and stakeholders from being influenced by unwarranted and speculative stories. We will continue to post such clarifications as required."

The release further stated, "Categorically deny any investigation by the Enforcement Directorate on OCL, our associates, and/or its Founder and CEO for anti-money laundering activities. Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding, inter alia, money laundering. In the past, certain merchants/users on our platforms have been subject to inquiries, and on those occasions, we have always cooperated with the authorities. During any such investigations by the authorities on any set of merchants/users in the past, we have cooperated with them on these investigations. This has been previously disclosed to the stock exchanges."

"We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness. There are other stories in various media, including social media, which are spreading speculation and misinformation on the reasons for RBI's action on Paytm Payments Bank. The recent direction from RBI is a part of the ongoing supervisory engagement and compliance process. For this action, we refer our stakeholders to the official press release of RBI dated January 31, 2024, and do not rely on unofficial sources,” it added.

Last week, RBI instructed Paytm to cease accepting new deposits in its accounts and popular digital wallets starting from February 29. Paytm has requested an extension of the deadline from the RBI and has also been seeking clarification from the central bank regarding transferring its license for the wallets business and FASTag.