Paytm's Vijay Shekhar Sharma Meets FM, But Told To Deal Directly With RBI — Exclusive

Sharma sought support from the Ministry of Finance, with regards to the recent clampdown on Paytm Payments Bank by the Reserve Bank of India and its impact on the fintech industry, the people quoted above said on the condition of anonymity.

However, since the matter was about regulatory issues, the Paytm founder was told to directly deal with the RBI, the people said.

Sharma reportedly also met with RBI officials on Monday to discuss similar issues.

On Jan. 31, the regulator imposed further stringent curbs on Paytm Payments Bank, an associate company of One97 Communications Ltd.

RBI, in its orders, said that Paytm Payments Bank cannot accept fresh deposits, top-ups or credit transactions in its accounts after Feb. 29. This was after the RBI observed persistent non-compliance and major supervisory concerns at the entity.

NDTV Profit had previously reported that inadequate Know-Your-Customer procedures, which led to transactions worth crores of rupees, was one of the major reasons for the RBI to impose curbs on Paytm Payments Bank. The regulator also found material lapses in the company's conduct.

The Confederation of All India Traders has also advised traders to switch from Paytm to other payment apps due to concerns about the security and continuity of financial services.