Paytm Payments Bank to Reduce Staff by 20 Percent

Paytm Payments Bank to Reduce Staff

VoM News Desk | March 16, 2024 | 10:31 AM IST | Breaking News | Follow on Google News

Paytm Payments Bank to Reduce Staff by 20 Percent/Reuters

Paytm Payments Bank to Reduce Staff by 20 Percent

Amid uncertainty surrounding its banking unit’s future due to regulatory deadlines, Paytm intends to reduce its workforce by approximately 20%, focusing on certain divisions such as operations.

Regulatory Challenges

The Reserve Bank of India’s directive in January compelled Paytm Payments Bank to cease most operations by March 15, leading to significant challenges for the company. This move has resulted in a 54% decline in Paytm shares, marking a tumultuous period for one of India’s leading digital payment firms.

Employee Concerns

Employees express frustration over the management’s decision, especially after assurances from CEO Vijay Shekhar Sharma in February that there would be no layoffs. However, the current situation contradicts these assurances, leaving employees uncertain about their future at the company.

In response, Paytm denies any layoffs, attributing ongoing adjustments to the annual appraisal cycle and role suitability assessments. Despite this, the situation remains tense as employees await clarity on their roles and future prospects within the organization.

After the regulatory deadline, Paytm Payments Bank customers will still have access to existing deposits, but no new deposits can be made. The bank’s regulatory license will remain intact unless revoked by the RBI, leaving questions about its future purpose.

Amidst these developments, Paytm anticipates obtaining a license from the National Payments Corp of India (NPCI) to continue offering digital payment services through the Paytm app via the unified payment interface (UPI), showcasing the company’s determination to navigate regulatory challenges while maintaining its presence in the digital payments landscape.

VoM News Desk

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