No communication with Paytm on transfer of business: SBI chairman Dinesh Khara
Following the RBI order, Paytm founder and CEO Vijay Shekhar Sharma said on February 1 that the fintech major is in discussion with some of its banking partners to transfer the business of Paytm Payments Bank.
- Feb 3, 2024,
- Updated Feb 3, 2024 5:01 PM IST
SBI chairman Dinesh Khara on Saturday said the State Bank of India (SBI) has not made any communication with Paytm Payments bank on the transfer of business from the company. While addressing a press conference to announce the bank's Q3 results, Khara said: "We haven't made any communication. They are maintaining some accounts with us," said Khara. He added that the bank is reaching out to its merchants.
On January 31, the Reserve Bank of India (RBI) imposed curbs on the business activities of Paytm Payments Bank asking it to stop all banking activities by the end of February.
However, he added that merchants can come back to SBI. “We are reaching out to all merchants and will be happy to welcome them back to ensure there are no disruptions in the payments ecosystem. We have SBI Payments which is a company that supports point of sale terminals, QR codes, or app based solutions. We are reaching out to merchants on an ongoing business and are also open to a one time migration of accounts,” Khara said.
Following the RBI order, Paytm founder and CEO Vijay Shekhar Sharma said on February 1 that the fintech major is in discussion with some of its banking partners to transfer the business of Paytm Payments Bank.
To be specific, the RBI barred Paytm Payments Bank Limited, an associate of One 97 Communications Limited, from taking further deposits or undertaking credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards, after February 29.
However, it will be allowed to credit any interest, cashbacks, or refunds into these accounts at any time, and customers are also free to withdraw or use their balances in these accounts without restrictions.
Paytm CEO Vijay Shekhar Sharma, in a post on X, said: "To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. 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 added: “Many large banks have reached out to us offering support and we are overwhelmed. We will have to change our Virtual Payment Address (VPA) as we partner with other banks. The decision to change partner banks will happen in a few weeks. We are in discussion and these are yet to be completed.”
The RBI also asked to terminate the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. at the earliest, in any case not later than February 29, 2024.
The central bank directed the payments bank to settle all pipeline transaction and nodal accounts by March 15 and no further transaction shall be permitted thereafter.
Also read: 'I wouldn't want to...': What Nirmala Sitharaman said on the crisis at Paytm
Also read: RBI may cancel operating licence of Paytm Payments Bank next month, says report
SBI chairman Dinesh Khara on Saturday said the State Bank of India (SBI) has not made any communication with Paytm Payments bank on the transfer of business from the company. While addressing a press conference to announce the bank's Q3 results, Khara said: "We haven't made any communication. They are maintaining some accounts with us," said Khara. He added that the bank is reaching out to its merchants.
On January 31, the Reserve Bank of India (RBI) imposed curbs on the business activities of Paytm Payments Bank asking it to stop all banking activities by the end of February.
However, he added that merchants can come back to SBI. “We are reaching out to all merchants and will be happy to welcome them back to ensure there are no disruptions in the payments ecosystem. We have SBI Payments which is a company that supports point of sale terminals, QR codes, or app based solutions. We are reaching out to merchants on an ongoing business and are also open to a one time migration of accounts,” Khara said.
Following the RBI order, Paytm founder and CEO Vijay Shekhar Sharma said on February 1 that the fintech major is in discussion with some of its banking partners to transfer the business of Paytm Payments Bank.
To be specific, the RBI barred Paytm Payments Bank Limited, an associate of One 97 Communications Limited, from taking further deposits or undertaking credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards, after February 29.
However, it will be allowed to credit any interest, cashbacks, or refunds into these accounts at any time, and customers are also free to withdraw or use their balances in these accounts without restrictions.
Paytm CEO Vijay Shekhar Sharma, in a post on X, said: "To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. 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 added: “Many large banks have reached out to us offering support and we are overwhelmed. We will have to change our Virtual Payment Address (VPA) as we partner with other banks. The decision to change partner banks will happen in a few weeks. We are in discussion and these are yet to be completed.”
The RBI also asked to terminate the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. at the earliest, in any case not later than February 29, 2024.
The central bank directed the payments bank to settle all pipeline transaction and nodal accounts by March 15 and no further transaction shall be permitted thereafter.
Also read: 'I wouldn't want to...': What Nirmala Sitharaman said on the crisis at Paytm
Also read: RBI may cancel operating licence of Paytm Payments Bank next month, says report