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Paytm has a way out of the payments bank mess, but it's a treacherous path

Startup News FYIStartup News FYI · 9m
Paytm has a way out of the payments bank mess, but it's a treacherous path

During an investor call, Paytm's leadership failed to address concerns over the recent action taken by the RBI against Paytm Payments Bank (PPBL). Paytm's CEO, Vijay Shekhar Sharma, stated that the payments bank has not shared details with Paytm about the RBI's opinion based on audits conducted over the past two years. Paytm's stock price has fallen by almost 36% in just two sessions, raising concerns about its path to profitability. Paytm is now focused on assuaging investor fears and has outlined steps it plans to take before the RBI-imposed deadline of February 29. However, Paytm is facing several challenges, including negotiations with other banks, migration of loan repayments, and the potential loss of user retention. The company's future remains uncertain.

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