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    Govt. guidance to Paytm CEO amid 10-min RBI clampdown meeting | Action Punjab

    ACTION PUNJAB NEWS Desk: Vijay Shekhar Sharma, the CEO of Paytm, finds himself in a fire-fighting mode as the Reserve Bank of India (RBI) directed Paytm to halt its popular digital wallet, deposits, and credit products. Here’s what unfolded during his recent interactions:

    Government’s Stance: During a brief 10-minute meeting with Finance Minister Nirmala Sitharaman, Sharma was informed that the government has no jurisdiction over the recent RBI restrictions, according to sources familiar with the matter.

    RBI Restrictions: Paytm faced a significant setback after the RBI’s directive to cease its digital wallet services, deposits, and credit products. This move caused Paytm’s shares to plummet by over 40 per cent, only seeing a rebound this Tuesday.

    Government’s Message: Sources reveal that during the meeting, Sharma was advised to resolve the issue directly with the RBI and ensure compliance with the regulatory guidelines.

    Meeting with RBI: In addition to the meeting with the finance minister, Sharma also held discussions with RBI officials to address the regulatory concerns raised by the central bank.

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    RBI’s Directive: The RBI’s directive, issued last Wednesday (January 31), instructed Paytm Payments Bank Ltd to cease accepting deposits or facilitating credit transactions after February 29. However, customers will retain access to their account balances without any limitations.

    Nodal Accounts Terminated: Alongside the restrictions on Paytm Payments Bank, the RBI terminated the nodal accounts of Paytm’s parent company, One97 Communications Ltd, further complicating the situation.

    Assurance to Customers: Paytm Payments Bank reassured its customers that their funds are secure. However, they will be unable to deposit additional funds into their accounts or wallets after February 29. Nonetheless, the Paytm app will continue to operate normally beyond that date.

    As the situation unfolds, Paytm navigates through regulatory challenges, seeking to maintain its services and reassure its user base amidst uncertainty.

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    (Inputs from agencies)

    Author: actionpunjab

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