Paytm's Vijay Shekhar Sharma tells employees amid crisis: 'Don't know what…' - Hindustan Times

Paytm's Vijay Shekhar Sharma puts up a brave face amid crisis, tells employees ‘no layoffs’

Feb 06, 2024 04:59 PM IST

Paytm CEO Vijay Shekhar Sharma told employees, “We are not completely sure of things…like what exactly went wrong."

Paytm founder Vijay Shekhar Sharma assured employees that there will be no layoffs as the company continues to struggle after the Reserve Bank of India (RBI) restricted Paytm Payment Bank Ltd (PPBL) from offering almost all major banking services- taking deposits, FASTag, and credit transactions.

Paytm founder and CEO Vijay Shekhar Sharma.(File)
Paytm founder and CEO Vijay Shekhar Sharma.(File)

“You are a part of the Paytm family, and there is nothing to worry about. Many banks are helping us,” Vijay Shekhar Sharma said during a virtual town hall with employees of Paytm Payment Bank Ltd (PPBL) as he was joined by company's President and Chief Operating Officer (COO) Bhavesh Gupta, and CEO of PPBL, Surinder Chawla.

Unlock exclusive access to the story of India's general elections, only on the HT App. Download Now!

“We are not completely sure of things…like what exactly went wrong. But we will figure out everything soon. We will reach out to the RBI to see what can be done,” he said.

The company has denied facing Enforcement Directorate (ED) probe amid RBI action. The stock exchanges have cut daily trading limits for the digital payments firm to 10% from 20% after almost a $2 billion rout in the stock.

Read more: Paytm crisis: No ED investigation either against company or CEO, company asserts

One employee said as per Moneycontrol that Vijay Shekhar Sharma took a “confident and assuring tone” to speak to the workforce.

“It was a morale booster call to cut the rumours of layoffs. The majority of the talk was around job security, and bank tie-up. No single name was taken, but we were told that a lot of banks have approached,” a senior employee who was a part of the call, said.

Vijay Shekhar Sharma also told employees that the “company will focus on being extremely compliant moving forward.”

Another executive working with the product team said as per the outlet, “People are not scared. We always expected RBI to say something but not outright ban. Changes have been going on for the past 6 months among teams to comply with norms. Like we separated PPBL and Paytm app logo."

Meanwhile, another employee said that respective team heads also met with their group of employees to discuss details about the RBI order.

“Friday (Feb 1) was all about closed-door meetings. Every team was asked to pull out every single data and information on current status around users, accounts, transactions, and report to the heads,” he said.

This comes as traders' body Confederation of All India Traders (CAIT) issued an advisory asking businesses to switch from Paytm to other payment applications.

“The RBI has imposed certain restrictions, prompting CAIT to recommend that users take proactive measures to protect their funds and ensure uninterrupted financial transactions. Large number of small traders, vendors, Hawkers and women are making payments through Paytm and as such RBI restrictions on Paytm could lead to financial disruptions for these people," the CAIT said.

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
Share this article

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

Story Saved
Live Score
Saved Articles
My Reads
Sign out
New Delhi 0C
Monday, April 15, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On