26, February, 2024
HomeBusinessAxis Bank Open to Collaboration with Paytm Pending RBI Approval

Axis Bank Open to Collaboration with Paytm Pending RBI Approval

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Axis Bank’s CEO, Amitabh Chaudhry, has expressed the bank’s openness to collaborate with Paytm, pending regulatory approval from the Reserve Bank of India (RBI). Chaudhry emphasized the importance of Paytm as a key player and stated, “Subject to regulatory approval and if the regulator allows us to work with Paytm, of course, we will work with them.”

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Discussions are currently underway between Axis Bank and Paytm for general business services, according to Arjun Chowdhry, Group Executive of Affluent Banking, NRI, Cards, and Payments at Axis Bank. While Chowdhry mentioned ongoing conversations for normal business services, he did not provide specific details about the “new things” being discussed.

In related news, Paytm confirmed the resignation of Manju Agarwal, an independent director of Paytm Payments Bank. Agarwal, formerly the Deputy Managing Director at the State Bank of India (SBI), cited personal commitments as the reason for her resignation. She had been a part of the Paytm Payments Bank board since May 2021.

The RBI imposed business restrictions on Paytm Payments Bank on January 31, including a prohibition on new deposits and credit transactions after February 29. The regulatory action was taken due to major KYC irregularities, posing serious risks to customers, depositors, and wallet holders. The RBI’s investigation revealed instances where the same PAN was linked to over 100 customers, raising concerns about money laundering.

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RBI Governor Shaktikanta Das clarified that there would be no review of the action taken against Paytm Payments Bank. He emphasized that the RBI prioritizes customer interests and financial stability, underscoring the importance of adhering to regulatory compliance in the fintech sector.

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