SUMMARY
The meeting between FM Sitharaman and Sharma lasted for nearly 10 minutes. He was directed to approach the RBI to ‘sort out the matter’
On Monday, the Paytm founder met officials of the RBI to discuss the central bank’s restriction on Paytm Payments Bank
Last week, the RBI prohibited Paytm Payments Bank from accepting deposits or processing credit transactions over material supervisory concerns
Paytm founder and chief executive officer (CEO) Vijay Shekhar Sharma reportedly met finance minister Nirmala Sitharaman on Tuesday (February 6) amid the crisis at the fintech giant following the Reserve Bank of India’s restrictions on Paytm Payments Bank.
According to CNBC-TV18, the meeting between FM Sitharaman and Sharma lasted for nearly 10 minutes and largely centred around the central bank’s recent directives. Sources told The Hindu businessline that Sharma explained his position during the meeting but was directed to approach the RBI to ‘sort out the matter’.
This comes barely a day after the Paytm founder met officials of the RBI to discuss the latter’s regulatory concerns about Paytm Payments Bank. The company is said to have sought an extension to the current deadline of February 29 and more clarity on the transfer of its licence for the wallets business.
No resolution was said to have been formulated during the meeting between the two parties. The RBI also reportedly did not spell out any remedial measures in the meeting.
Earlier today, a clutch of Indian startup founders shot off a letter to Prime Minister Narendra Modi, FM Sitharaman and RBI governor Shaktikanta Das, calling for the review and reconsideration of the directives on Paytm Payments Bank.
Signed by Bharat Matrimony’s Murugavel Janakiraman, Ritesh Malik of Innov8, PB Fintech’s Yashish Dahiya, and Rajesh Magow of MakeMyTrip, the letter urged the Centre to engage in constructive dialogue with the fintech ecosystem.
Last week, the RBI imposed restrictions on Paytm Payments Bank and prohibited it from accepting deposits or processing credit transactions. The central bank also directed the payments bank to halt other banking services, including UPI facilities and fund transfers, post February 29, 2024.
The aftermath saw Paytm shares hit lower circuit on three consecutive trading occasions, wiping off a third of its market capitalisation.
However, the stock made a smart recovery on Tuesday, closing 3.02% higher at INR 451.60 on the BSE.
