All posts tagged: paytm payments bank

Paytm Q4 Results Show Loss Widens To Rs 550 Crore After RBI Action Against Paytm Payments Bank

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Representational Image New Delhi: Digital payments firm Paytm posted a wider loss in the fiscal fourth quarter on Wednesday, hurt by weakness in its payments and financial services business after the central bank shut down its banking unit. The company’s consolidated net loss was at Rs 5.5 billion as it took an impairment of Rs 2.27 billion towards scaling down the business of Paytm Payments Bank. Paytm had reported a loss of Rs 1.68 billion a year ago in the March-quarter. Meanwhile, its consolidated revenue from operations fell to Rs 22.67 billion ($272.3 million) for the January-March quarter from Rs 23.35 billion a year earlier. The Reserve Bank of India had ordered Paytm Payments Bank, an associate of Paytm, to stop accepting fresh deposits in its accounts or digital wallets from March, raising concerns about revenue from the company’s main payments business. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.) Source link

Paytm CEO Vijay Shekhar Sharma

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Paytm Payments Bank’s parent is One 97 Communications. The board of India’s Paytm Payments Bank is independent and capable of addressing regulatory concerns, the chief executive officer of digital payments firm Paytm, formally known as One97 Communications Ltd, (OCL) said on Monday. “I, personally or anyone from OCL, have no connection with the payments bank,” Vijay Shekhar Sharma said at a webinar. “There is an independent board taking care of everything and we have full faith in their capability.” The Reserve Bank of India (RBI) in late January had ordered Paytm Payments Bank to stop accepting new deposits in its accounts or digital wallets from March, citing supervisory concerns and persistent non-compliance with rules. Paytm Payments Bank’s parent is One 97 Communications, popularly known as Paytm for its digital payments app. One97 owns 49% in the payments bank, while Mr Sharma holds the remaining 51%. In February, following the RBI’s order, Mr Sharma stepped down as non-executive chairman and board member of Paytm Payments Bank.   (Except for the headline, this story has not been …

Paytm Payments Bank CEO Surinder Chawla Resigns

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Beleaguered Paytm Payments Bank’s managing director and CEO Surinder Chawla has resigned from the company, a regulatory filing said on Tuesday. Chawla’s resignation comes amidst Paytm Payments Bank facing prohibitory action from banking regulator RBI. “Surinder Chawla, Managing Director and CEO of PPBL, has tendered his resignation on April 8, 2024, on account of personal reasons and to explore better career prospects. He will be relieved from PPBL w.e.f. close of business hours on June 26, 2024, unless changed by mutual consent,” One97 Communications, Paytm brand owner, said in a regulatory filing. Chawla joined PPBL in January last year after the payments bank received approval from the Reserve Bank of India. In a major action against Paytm Payments Bank (PPBL), RBI, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. Subsequently, the deadline was extended to March 15. The direction follows persistent non-compliance and continued material supervisory concerns, the central bank had said in a statement. On March 11, 2022, the …

Paytm Gets Third-Party UPI App License From NPCI as Payments Bank Ceases Operations

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Indian digital payments firm Paytm, formally known as One 97 Communications, was on Thursday granted a third-party application provider license by the country’s payments authority, which will enable it to facilitate payments after its banking unit ceases operations. The license will allow customers to continue using the Paytm app for payments through India’s popular unified payment interface (UPI), after Paytm Payments Bank ceases operations by March 15, following regulatory action due to non-compliance with certain norms. Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system provider banks to Paytm, the National Payments Corporation of India (NPCI) said in a statement. Yes Bank shall also act as a merchant acquiring bank for existing and new UPI merchants for Paytm, it added. Paytm has been advised to complete the migration for all existing handles and mandates, wherever required, to new payment system provider banks at the earliest, the NPCI said. UPI is India’s real-time payments system that allows users to transfer money across banks. Paytm, the third-largest app for UPI …

Paytm Payments Bank Said to Cut About 20 Percent of Staff as Business Halt Looms

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Indian digital payments firm Paytm plans to cut close to 20 percent of staff at its banking unit amid uncertainty over the unit’s future due to a looming central bank deadline for it to halt most operations, two sources said. Paytm Payments Bank has decided to lay-off staff in certain divisions, including operations, the sources with direct knowledge of the matter said. The unit had 2,775 employees as of December 2023, data from information provider Tracxn shows. Paytm, formally known as One 97 Communications, owns a 49 percent stake in the bank which was ordered by the Reserve Bank of India (RBI) at the end of January to stop accepting credit transactions or deposits across products such as savings accounts, prepaid cards and digital wallets by March 15, following persistent compliance breaches. Paytm shares have lost 54 percent of their value since the regulatory clampdown, in the worst crisis for one of India’s largest digital payment firms. “Since this regulatory order has coincided with appraisal season, employees with low ratings have been asked to leave,” …

Paytm Payments Bank deadline: Full list of services you can’t use after March 15

Published by Parlour News

The Reserve Bank of India has stopped Paytm Payments Bank Ltd (PPBL) from accepting fresh deposits or top-ups from March 15, 2024. The central bank cited consistent non-compliance and material supervisory concerns in its decision but released a set of Frequently Asked Questions (FAQs) to provide Paytm customers with information on the restrictions that have been put by it on Paytm Payments. Here’s a list of services that cannot be availed by customers as per RBI: Paytm Payments Bank March 15 deadline: A QR code of Paytm is seen at a mobile repairing shop in Kolkata, India.(Reuters) Source link

Financial Intelligence Unit Imposes Penalty of Over Rs. 5 Crore on Paytm Payments Bank

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India’s Financial Intelligence Unit (FIU) on Friday imposed a penalty of Rs. 5,49,00,000 ($662,565) on Paytm’s banking arm, Paytm Payments Bank, for violations in reporting illegal money routed through its accounts, the country’s finance ministry said. The FIU initiated a review of Paytm Payments Bank after information from law enforcement agencies about some entities engaged in illegal acts, including organising and facilitating online gambling, and routing proceeds through the bank. “The money generated from these illegal operations, i.e. proceeds of crime, were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank,” the ministry said in a statement. The payments bank failed to report suspicious transactions and conduct due diligence of these accounts, the FIU’s order said. Based on the “voluminous” material available on record, it found that the charges against Paytm Payments Bank were substantiated, the ministry added. The penalty pertains to issues within a business segment that was discontinued two years ago, a spokesperson for Paytm Payments Bank said. The company has since enhanced its monitoring systems and …

Paytm Payments Bank fined Rs 5.49 crore for money laundering | Business News

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The Financial Intelligence Unit-India (FIU-IND) has imposed a penalty of Rs 5.49 crore on Paytm Payments Bank Ltd (PPBL) in connection with the violations of its obligations under the Prevention of Money Laundering Act (PMLA), the Finance Ministry said Friday. The move comes as PPBL is under the RBI’s lens over persistent non-compliance and continued material supervisory concerns. The Reserve Bank of India has told Paytm Payments Bank Ltd (PPBL) to halt deposits, credit transactions and top-ups in customer accounts, prepaid instruments and wallets by March 15. Source link

Paytm Terminates Some Ties With Troubled Payments Bank Unit

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Payments firm Paytm on Friday cut some ties with its payments bank unit, which India’s banking regulator has ordered to be wound down, in its latest attempt to address compliance concerns that triggered a meltdown in its shares last month. Paytm, formally known as One 97 Communications, and its banking unit mutually agreed to end various inter-company agreements, the company said. It did not specify what agreements were being terminated. Paytm Payments Bank also agreed to simplify the shareholders’ agreement to support governance, independent of its shareholders, Paytm said. “Paytm and Paytm Payments Bank will not be entering into related-party transactions henceforth as per the agreement,” a source familiar with company’s strategy said. The source did not wish to be identified because he was not authorised to speak with the media. Paytm did not immediately respond to a Reuters’ email seeking comment. Paytm CEO Vijay Shekhar Sharma owns a 51 percent stake in Paytm Payments Bank while Paytm owns the rest. The move comes days after Sharma stepped down as non-executive chairman and board member …

Paytm Discontinues Inter-Company Agreements With Paytm Payments Bank

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Paytm did not specify what agreements were being terminated. BENGALURU: Paytm and its payments bank unit have mutually agreed to discontinue various inter-company agreements in the process to reduce dependencies, the embattled payments firm said on Friday. Paytm, formally known as One 97 Communications, did not specify what agreements were being terminated. The payments bank agreed to simplify the shareholders’ agreement to “support (Paytm Payments Bank’s) governance, independent of its shareholders,” the company said. Paytm CEO Vijay Shekhar Sharma owns a 51% stake in Paytm Payments Bank while Paytm owns the rest. The move came days after Mr Sharma stepped down as non-executive chairman and board member of the payments bank unit, as part of a major overhaul that follows a central bank clampdown. The Reserve Bank of India had asked Paytm Payments Bank to wind down operations by March 15 due to persistent compliance issues and supervisory concerns, triggering a meltdown in Paytm’s stock. The action against the unit followed concerns including inadequate customer identity checks and a lack of arms-length distance from parent …