Paytm Payments Bank will stop accepting deposits and credit transactions on Friday (March 15), as required by the Reserve Bank of India. Thus, Paytm’s banking unit will lay off 20% of its workforce. Sources said the banking unit job layoff will affect at least 550 workers.
Tracxn reported 2,775 Paytm Payments Bank workers last year. According to the central bank, the bank had ongoing non-compliance and supervision issues. Sources say operations will be laid off, not other divisions. Paytm founder Vijay Shekhar Sharma informed staff in a town hall meeting last month that there will be no layoffs. Sources further said just the banking unit is being laid off while Paytm is in its yearly review cycle.
National Payments Corporation of India (NPCI) approved One97 Communications Limited (OCL), Paytm’s parent business, to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model a day before Paytm Payments Bank closed. This means Paytm can handle UPI.
Axis, HDFC, State Bank of India, and YES Bank will be OCL’s Payment System Providers. YES Bank will acquire OCL’s existing and new UPI merchants. The NPCI said @Paytm will be referred to YES Bank.
Conclusion
On Thursday, Paytm confirmed that its app will continue to run beyond March 15, 2024. A spokesperson for Paytm said, “We are expanding our financial services distribution platform with leading institutions. Paytm aims to create an inclusive next-generation financial ecosystem for all users nationwide.
