Paytm Founder Assures No Layoffs, Focuses on Collaborations with RBI

In a recent virtual town hall meeting, Vijay Shekhar Sharma, the founder of Paytm, reassured the company's employees amidst the challenges posed by recent restrictions imposed by the Reserve Bank of India (RBI).

During the hour-long virtual meeting, approximately 800-900 employees attended, Sharma acknowledged the uncertainty surrounding the situation. However, he unequivocally stated that there would be no layoffs despite the ongoing crisis. Paytm Payment Bank Ltd (PPBL) has faced limitations in banking services following the RBI's regulatory measures.

Sharma conveyed the company's active engagement with the RBI to comprehend and address the issues at hand. He stressed the significance of employees as integral members of the Paytm family and urged them not to be unduly concerned.

In response to the restrictions on PPBL, Paytm is exploring collaborations with other banks to mitigate challenges related to merchant bank account transfers, user communication, and stock price stability. Stock exchanges have reduced Paytm's daily trading limits from 20 per cent to 10 per cent following a significant decline in the company's stock value.

Acknowledging the importance of compliance, Sharma assured employees that Paytm would prioritize adherence to regulations in the future. He confidently addressed concerns about job security, aiming to bolster employee morale during these uncertain times.

While the State Bank of India (SBI) Chairman extended assistance to affected customers, Paytm is actively seeking partnerships to navigate the challenges posed by the RBI restrictions. ICICI Bank is being considered as a potential collaborator.

In response to the crisis, the Confederation of All India Traders (CAIT) issued an advisory recommending businesses to explore alternative payment applications, citing potential financial disruptions. This advisory is intended to safeguard the interests of small traders, vendors, hawkers, and women who rely on Paytm for transactions.

As Paytm continues to grapple with the impact of RBI restrictions, employees and stakeholders eagerly await further communication from the company regarding its strategies and plans to overcome the crisis.