What FM Nirmala Sitharaman told Paytm CEO Vijay Shekhar Sharma during their 10-minute meeting
During the meeting with the Finance Minister Nirmala Sitharaman, Paytm CEO Vijay Shekhar Sharma reportedly elucidated the company's stance concerning the issues raised by the RBI.
FollowThe Chief Executive Officer (CEO) of Paytm, Vijay Shekhar Sharma, engaged in a pivotal meeting with Finance Minister Nirmala Sitharaman on Tuesday, shedding light on the challenges the company faces concerning compliance with regulations set forth by the Reserve Bank of India (RBI). The encounter, reportedly lasting about 10 minutes, provided an opportunity for Sharma to elucidate Paytm's stance on various issues flagged by the RBI. The focal point of the discussion revolved around the looming February 29 deadline and the intricacies surrounding the prohibition on adding funds to Paytm Payments Bank accounts and wallets.
Also read: Will RBI issue clarification on Paytm curbs? Here's what top govt official said
In the wake of the meeting, a TOI report quoting sources familiar with the matter revealed that Sitharaman emphasized the imperative for Paytm to engage directly with the RBI to address the non-compliances highlighted. The Finance Minister's stance underscored the necessity for constructive dialogue between the company and the regulatory authority to navigate through the challenges effectively.
Notably, Paytm's apprehensions extend beyond the immediate concerns regarding the prohibition deadline. The company also reportedly voiced unease regarding the Fastag ban, emphasizing the potential disruption it could pose to a substantial number of affected accounts, many of which are intricately linked to other financial transactions and standing instructions.
In a recent interview, Sitharaman hinted at the importance of regulatory compliance, highlighting the responsibility shared between companies and regulators. She refrained from delving deeper into the specifics, indicating the nuanced nature of the ongoing discussions between Paytm and the RBI.
Earlier in the day, Paytm's top brass engaged in discussions with RBI officials, providing updates on their compliance efforts and seeking clarity on the new directives issued. Of immediate concern to Paytm is the retention of the virtual payment address @paytm for both app users and merchants, along with facilitating the seamless migration of merchant bank accounts.
One crucial aspect reportedly raised during discussions with the RBI pertained to the classification of non-KYC wallets as a legacy issue, originating from the period of demonetization when wallets were permitted to be loaded with minimal KYC requirements. Initially, minimum KYC norms allowed for the opening of wallets with basic details, including a verified mobile number and self-declaration of identity.
