What Paytm CEO was told by Finance Minister Nirmala Sitharaman during the ten-minute meeting
'Finance Minister Nirmala Sitharaman and Paytm CEO Vijay Shekhar Sharma met to talk about Paytm's concerns including the Fastag ban, funding Paytm Payments Bank accounts, and keeping @paytm available to merchants and app users. Sharma also outlined his attempts to satisfy RBI compliances and requested an extension of the deadline of February 29.
Sharma is said to have been convinced by Sitharaman to speak with the RBI about the issue and resolve the identified non-compliances. Sharma reportedly requested a transition plan, an extension of the deadline of February 29th, and an explanation of the steps being taken to comply with the regulator’s requirements at the meeting with the RBI. On February 6, Paytm CEO Vijay Shekhar Sharma met with Finance Minister Nirmala Sitharaman. Those with knowledge of the situation estimate that the meeting lasted around ten minutes. Sharma is said to have outlined the company’s stance on the many points raised by the RBI at the meeting with the FM.
Paytm voiced concerns to the minister during the meeting about the Fastag ban and the inability to add funds to Paytm Payments Bank accounts and wallets after February 29. The company highlighted the potential disruption caused by the large number of affected accounts, many of which have standing instructions and linkages to other accounts, which would inconvenience customers.
Sitharaman had said as much last week in an interview with TOI. She had stated, “It is for the company and the regulator to deal with each other,” but she would not elaborate.
The business has defended non-KYC wallets in talks with the RBI, claiming that they are a legacy problem from digital wallets created during the demonetisation phase, when wallets could be loaded with very little KYC. At first, opening a wallet with just the very minimum of information—a validated cellphone number, a self-declaration of name, and a unique identification number—was permitted under minimum KYC regulations. Top Paytm executives also met with RBU representatives earlier in the day to discuss the new order and to give updates on their compliance initiatives. Their top priorities right now are making it easier for merchants to migrate their bank accounts once and keeping the @paytm virtual payment address available to both app users and merchants.
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