Will Paytm Payment Bank be able to survive by changing the board? Here are the details - Newztezz Online


Tuesday, March 5, 2024

Will Paytm Payment Bank be able to survive by changing the board? Here are the details

Paytm Payments Bank, one of the country's largest digital payment platforms, has made changes in its board, but will this move save the company from RBI action? These are its details

Reserve Bank of India (RBI) has banned Paytm Payments Bank, it currently has exemption till March 15. Meanwhile, there has been a lot of change in the Board of Directors of Paytm Payments Bank, the company's founder Vijay Shekhar Sharma resigned from his post. An advisory panel has also been formed under the chairmanship of former SEBI Chairman M. Damodaran. Is Paytm Payments Bank going to get any relief from all this? Will the ban imposed on him be lifted after March 15?

Paytm Payments Bank has worked to improve its image after the strict action taken by RBI. That is why changes have been seen in the board of Paytm Payments Bank Limited. However, industry experts are considering these steps of Paytm as very late steps. He says that Paytm should have shown such seriousness on the warnings received earlier.

Regulation is new for RBI

On the other hand, regulation of fintech companies like Paytm is also new for the Reserve Bank of India (RBI). To monitor such payment banks and fintech companies, a separate department has been created in RBI two years ago, which has started paying attention to this sector. Whereas the entry of Payments Bank in the banking sector of India also took place in November 2014. Earlier, considering the needs of common and poor people, Small Finance Bank was entered in 2009. Amidst all this, Paytm Payments Bank Limited has been working since 2017.

Meanwhile, if we look at the government's stance on RBI's action against Paytm Payments Bank, it seems that it has the support of the government. Even after Vijay Shekhar Sharma's meeting with Finance Minister Nirmala Sitharaman, a statement came that this is the job of the regulator. Paytm should directly talk to RBI regarding this. Only after this has the resignation of Vijay Shekhar Sharma come. Meanwhile, RBI extended the relief from the ban on Paytm Payments Bank from 29 February to 15 March.

Will Paytm get benefit?

The way RBI has received support from the government, it shows that the government is in favor of tightening the regulation in the country. On this, experts say that perhaps that is why the stakeholders of Paytm Payments Bank have made changes in the board, so that any potential buyer does not go back after getting influenced by the image of Vijay Shekhar Sharma. Now it remains to be seen what happens with Paytm Payments Bank after March 15?

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