Paytm’s chief executive Vijay Shekhar Sharma met finance minister Nirmala Sitharaman on Tuesday, days after the banking regulator ordered its payment bank to halt business leading to a share price rout, said a report by Reuters citing two sources.
Earlier in the day, Reuters had reported that Sharma and a few Paytm officials had met the Reserve Bank of India (RBI) chief on Monday to discuss regulatory concerns.
The meetings come after the RBI asked Paytm Payments Bank last Wednesday to stop accepting new deposits in its accounts and its popular digital wallets from March, citing supervisory concerns and non-compliance with rules.
“Discussions are on about addressing the regulatory concerns and compliance issues with both the RBI and the ministry,” said one of the sources.
The company has sought an extension of the February 29 deadline from the RBI and has also been seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service Fastag, the source said.
“The RBI heard Paytm out without making any commitments,” a second source said.
As of Monday, Paytm’s shares had fallen about 42%, wiping $2.5 billion off its market value on concerns about the impact on the wider business, as Paytm Payments Bank powers most features of the digital payments app, which competes with the likes of Walmart’s PhonePe and Google.
Earlier in the day, Reuters had reported that Sharma and a few Paytm officials had met the Reserve Bank of India (RBI) chief on Monday to discuss regulatory concerns.
The meetings come after the RBI asked Paytm Payments Bank last Wednesday to stop accepting new deposits in its accounts and its popular digital wallets from March, citing supervisory concerns and non-compliance with rules.
“Discussions are on about addressing the regulatory concerns and compliance issues with both the RBI and the ministry,” said one of the sources.
The company has sought an extension of the February 29 deadline from the RBI and has also been seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service Fastag, the source said.
“The RBI heard Paytm out without making any commitments,” a second source said.
As of Monday, Paytm’s shares had fallen about 42%, wiping $2.5 billion off its market value on concerns about the impact on the wider business, as Paytm Payments Bank powers most features of the digital payments app, which competes with the likes of Walmart’s PhonePe and Google.