Paytm (One97 Communications) in a press release has stated that Paytm Payments Bank is taking immediate steps to comply with the RBI directions and is working with the regulator to address their concerns as soon as possible.
The statement comes in hours after the Reserve Bank of India on Wednesday evening barred Paytm Payments Bank to accept any further deposits, credit facilities and to further not involve in any banking related activities.
Paytm in its statement further says that they will now completely move to work with other banks and not Paytm Payments Bank for banking related activities. “We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL’s journey is to continue to expand its payments and financial services business, only in partnerships with other banks,” the company said in an exchange filing.
Paytm has said that this decision by the RBI will impact their EBITDA annually by Rs 300-500 crore. “Depending on the nature of the resolution, the Company expects this action to have a worst case impact of Rs 300 to 500 crores on its annual EBITDA going forward. However, the Company expects to continue on its trajectory to improve its profitability,” said Paytm.
On the issue of termination of nodal account of One97 Communications and Paytm Payments Services Limited, they will move the nodal to other banks during this period, the company clarified.
Clearing the market rumours about Paytm’s founder Vijay S Sharma’s, the company says, “Our founder has reconfirmed to us that he has not taken any margin loans, or otherwise pledged any shares that are directly or indirectly owned by him.”
