Despite ongoing challenges, Paytm founder Vijay Shekhar Sharma declares, “There Will Be No Layoffs.”

The founder of Paytm, Vijay Shekhar Sharma, has informed staff members that there won’t be any layoffs despite the company’s continued difficulties as a result of RBI limitations on Paytm Payment Bank Ltd (PPBL).

PPBL is prohibited by the RBI from offering a number of crucial banking services, including taking care of FASTag transactions, processing credit transactions, and receiving deposits.

“You are safe and secure because you are a member of the Paytm community. During a virtual town hall with PPBL staff, Vijay Shekhar Sharma was cited by the HT as saying, “Many banks are helping us.”

“We are not quite certain of the precise cause of the issue. However, we will shortly work things out. To find out what may be done, we shall get in touch with the RBI,” he said.

Paytm will function normally going forward.

Sharma said on Friday that even after February 29, business as normal would continue to be conducted. On social networking platform X, the founder of Paytm said that the firm is dedicated to providing complete compliance services to the country.

“To all Paytmers, your favorite app is operational and will continue to function normally after February 29th,” Sharma said.

After February 29, 2024, the RBI has prohibited PPBL from taking deposits or top-ups in any customer account, prepaid cards, wallets, and FASTags, among other places.

PPBL is classified by OCL as an associate of the corporation rather than a subsidiary, despite OCL owning a 49 percent share in the latter.

“I, along with the whole Paytm team, thank you for your unwavering support. There is always a solution to a problem, and we really want to serve our country to the best of our abilities. India would continue to lead the world in payment innovation and financial services inclusion, Sharma said, with PaytmKaro serving as its main benefactor.

During a Thursday earnings call, Paytm’s senior management said that they are developing a strategy to migrate customers of their wallet, FASTag, PPBL, and other services to other banks.

The RBI ruling, according to the business, would affect its yearly operating earnings by about Rs 300–500 crore as its clients won’t be able to add money to their wallets or use FASTag, among other services.

Separately, the firm said that the RBI’s directive to its associate bank has no impact on its offline merchants network offering or device business, which includes Paytm Soundbox, EDC, and QR. The finance business will keep adding merchants to its platform via onboarding.

“Paytm Payment Gateway (online merchants) will keep providing payment options to its current merchant base. The business said that other financial services like loan distribution, insurance distribution, and stock broking are unrelated to Paytm’s associate bank and should not be impacted by this move.

According to Paytm, users may keep using their current amounts in their savings accounts, wallets, FASTags, and NCMC (National Common Mobility Card) accounts, and the RBI decision has no effect on their deposits.

RBI has mandated that PPBL pay all nodal accounts and pipeline transactions (pertaining to all transactions started on or before February 29, 2024) by March 15, 2024, beyond which point no further transactions would be allowed.

During the conversation, Sharma described the RBI directive as a “huge speed bump” and said that he did not know the precise detail that sparked the action or how to interpret its trigger.

“I can speak for Paytm when I say that this is more of a big speed bump, but we think that with the help of other banks and the capabilities we have already developed, we will be able to see through it in the coming days, or quarters, as the case may be,” he had previously said.