Axis Bank open to working with Paytm if RBI permits
Axis Bank CEO Amitabh Chaudhry has stated that the bank is willing to collaborate with Paytm if the Reserve Bank of India (RBI) grants permission. "Subject to regulatory approval and if the regulator allows us to work with Paytm, of course we will work with them, they are an important player," said Chaudhry. Paytm's subsidiary, Paytm Payments Bank, has been barred by the RBI from accepting deposits or top-ups in customer accounts after February 29, 2024 due to compliance-related issues.
Axis Bank is 'discussing new things' with Paytm
Arjun Chowdhry, Group Executive of Affluent Banking, NRI, Cards and Payments at Axis Bank, stated that the bank is in talks with Paytm for general business services. He mentioned, "We are having conversations with Paytm for our normal business services. Post the development that happened on January 31, we are discussing new things." However, Chowdhry did not reveal specifics of the 'new things' being worked upon.
Paytm Payments Bank director resigns
In separate news, Paytm today confirmed the resignation of Manju Agarwal, who served as an independent director of Paytm Payments Bank. In a regulatory filing, the company said that she resigned due to personal commitments. Agarwal was formerly the Deputy Managing Director at the State Bank of India (SBI) and has been a part of the Paytm Payments Bank board since May 2021.
RBI's restrictions on Paytm Payments Bank, explained
The RBI imposed business restrictions on Paytm Payments Bank on January 31, including prohibiting new deposits and credit transactions after February 29. The regulator discovered major KYC irregularities, putting customers, depositors, and wallet holders at serious risk. The RBI investigation found that in thousands of instances, the same PAN was linked to over 100 customers and in some cases, more than 1,000 customers, raising money-laundering concerns.
RBI Governor denies review in Paytm case
Shaktikanta Das, the RBI Governor, said that the central bank is not interested in conducting a review of Paytm's regulatory non-compliance case. "Let me be very clear that there is no review of the action taken against Paytm Payments Bank. The FAQ will deal with customer interest issues," Das asserted. The RBI Governor underlined that while the RBI promotes the fintech sector, the interest of customers and financial stability is of prime importance.
