Amid the crisis at Paytm, Vijay Shekhar Sharma advises employees: “Uncertain about what…”
Amid the Paytm crisis, CEO Vijay Shekhar Sharma informed employees regarding the RBI order, stating, “We’re not entirely certain about the situation… unsure of the exact nature of the issue.”
Vijay Shekhar Sharma, the founder of Paytm, reassured employees that despite the company’s ongoing challenges following the Reserve Bank of India (RBI) restricting Paytm Payment Bank Ltd (PPBL) from providing nearly all significant banking services—such as accepting deposits, FASTag, and credit transactions—there would be no job cuts.
“Consider yourselves integral members of the Paytm family, and there’s no cause for concern. Several banks are extending their support to us,” Vijay Shekhar Sharma assured employees during a virtual town hall with the staff of Paytm Payment Bank Ltd (PPBL), accompanied by the company’s President and Chief Operating Officer (COO), Bhavesh Gupta, and PPBL’s CEO, Surinder Chawla.
“We’re not entirely certain about the situation… unsure of the exact nature of the issue. However, we will promptly address all concerns. We plan to engage with the RBI to explore potential solutions,” he stated.
The company has refuted any involvement in an Enforcement Directorate (ED) investigation amidst the RBI’s actions. Following a stock value decline of nearly $2 billion, stock exchanges have reduced the digital payments firm’s daily trading limits from 20% to 10%.
According to a report from Moneycontrol, an employee mentioned that Vijay Shekhar Sharma adopted a “confident and reassuring demeanor” while addressing the workforce.
“It was an uplifting call aimed at dispelling rumors of layoffs. The focus was primarily on job security and potential bank collaborations. While specific names weren’t mentioned, we were informed that numerous banks have shown interest,” stated a senior employee who participated in the call.
Vijay Shekhar Sharma also assured employees that the “company will prioritize strict compliance going forward.”
According to an executive from the product team, as reported by the outlet, “There’s no sense of panic. We anticipated some action from the RBI, but not a complete ban. Over the past six months, various teams have been making adjustments to adhere to regulations. For instance, we’ve separated the logos of PPBL and the Paytm app.”
Additionally, another employee mentioned that team leaders held separate meetings with their respective groups of employees to delve into the specifics of the RBI directive.
“On Friday (February 1st), the focus was on confidential meetings. Each team was instructed to gather comprehensive data and details regarding the current status of users, accounts, transactions, and provide reports to their supervisors,” he stated.
As traders’ organization Confederation of All India Traders (CAIT) issued guidance advising businesses to transition from Paytm to alternative payment apps.
“Due to RBI-imposed limitations, CAIT suggests users take preemptive actions to safeguard their funds and maintain seamless financial transactions. A significant portion of small traders, vendors, hawkers, and women rely on Paytm for payments, and as a result, RBI’s restrictions on Paytm might cause financial disturbances for these individuals,” stated CAIT.
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