In the ever Growing Indian Mobile payments landscape, Can Paytm Regain Customer's Trust

The Board and Audit Committee has announced the discrepancies between the company's assertion of compliance and transactions classified as 'material' party transactions. Paytm has asserted its compliance with Regulation 23 read with Regulation 4(1)(h) of the SEBI Listings Regulations
The detailing says that there are unapproved FY 21-22 party transactions and Bank totaling of Rs 324 crore and Rs 36 crore.

A report on corrective measures is asked within 10 days by SEBI

It has not only pioneered mobile payments and QR technology but also become a household name with our innovations. The reach has deepened even into the remotest parts of the country with ‘Paytm Karo’ being the synonym of mobile payments. It has played a significant role in promoting mobile payments and reducing the reliance on cash transactions

The decline disrupts their ability to offer a comprehensive financial ecosystem and potentially dampens growth said Founder and CEO Assiduus Global, Somdutta Singh. Onboarding new merchants may be a challenge and thus a smooth transition must be ensured.

It also said that the recent regulatory restrictions have significantly impacted Paytm’s business environment and growth outlook. Despite the company’s extensive reach, its ability to mitigate the business impact will largely depend on the execution capabilities over the coming quarters.

Paytm Payments Bank will cut about 20% of staff. This will affect at least 550 employees

According to sources, Paytm spokesperson said that as OCL and PPBL are distinct entities, they cannot comment on PPBL’s internal decisions. “However, it’s important to note that the regulator has not mandated a shutdown of PPBL but has imposed certain operational restrictions,”

Paytm also said, “PPBL was not a partner for our credit operations so there is no impact.

Paytm assured that this warning will not affect its financial, operational, or other activities. The company is taking steps to address SEBI's concerns and enhance compliance protocols to prevent such issues in the future

Also Read :RBI issued three revised master directions on fraud risk management

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