Paytm Payments Bank layoffs: Digital funds platform Paytm Payments Bank is about to cut back its workforce by roughly 20% because it navigates uncertainties surrounding its future operations. The transfer is available in response to a looming deadline imposed by the Reserve Bank of India (RBI) for the financial institution to stop most of its actions.
According to a Reuters report, Paytm Payments Bank has initiated staff layoffs throughout numerous divisions, together with operations.As of December 2023, the financial institution employed 2,775 people, as per information from Tracxn, an info supplier.
Paytm, often known as One 97 Communications, owns 49% of the financial institution. The RBI directed the financial institution in late January to stop accepting credit score transactions or deposits in financial savings accounts, pay as you go playing cards, and digital wallets by March 15 due to ongoing compliance points. Since then, Paytm shares have witnessed a major decline, dropping 54% of their worth.
An worker from the banking unit advised Reuters that due to the timing of the regulatory order throughout the appraisal season, these with low scores are being let go.
ALSO READ | Paytm FASTag customers alert! NHAI needs customers to procure new one from one other financial institution by March 15
They expressed frustration as a result of administration had initially promised no layoffs. Another banking unit worker confirmed that in a February town-hall assembly, Paytm CEO Vijay Shekhar Sharma assured staff there would be no job cuts.
Both sources most well-liked to be nameless as they lacked authorisation to communicate to the media.
While Paytm Payments Bank declined to touch upon the staff reductions, a spokesperson from Paytm mentioned, “There are no layoffs here”. The spokesperson clarified that the continuing annual appraisal cycle would possibly lead to changes primarily based on efficiency evaluations and position suitability. The spokesperson mentioned that this course of differs from layoffs.
Following the deadline on Friday, prospects with present deposits within the financial institution’s accounts, wallets, and toll tags for freeway taxes can nonetheless entry them. However, the financial institution is not going to settle for any new deposits.
Paytm Payments Bank will retain its regulatory license except revoked by the RBI.
ALSO READ | Paytm Payments Bank, free Aadhaar updation, tax saving & extra: 9 cash deadlines in March 2024 that you shouldn’t miss
The second supply expressed uncertainty concerning the future position of Paytm Payments Bank. Both sources famous a scarcity of communication from Paytm concerning the following steps for banking staff.
According to the second supply, Paytm has moved roughly 100 staff from the banking unit.
Despite regulatory challenges, Paytm goals to proceed its digital cost companies by means of its app. The firm expects to receive a license from the National Payments Corp of India (NPCI) that might allow prospects to use the Paytm app for funds by way of the unified cost interface (UPI).
According to a Reuters report, Paytm Payments Bank has initiated staff layoffs throughout numerous divisions, together with operations.As of December 2023, the financial institution employed 2,775 people, as per information from Tracxn, an info supplier.
Paytm, often known as One 97 Communications, owns 49% of the financial institution. The RBI directed the financial institution in late January to stop accepting credit score transactions or deposits in financial savings accounts, pay as you go playing cards, and digital wallets by March 15 due to ongoing compliance points. Since then, Paytm shares have witnessed a major decline, dropping 54% of their worth.
An worker from the banking unit advised Reuters that due to the timing of the regulatory order throughout the appraisal season, these with low scores are being let go.
ALSO READ | Paytm FASTag customers alert! NHAI needs customers to procure new one from one other financial institution by March 15
They expressed frustration as a result of administration had initially promised no layoffs. Another banking unit worker confirmed that in a February town-hall assembly, Paytm CEO Vijay Shekhar Sharma assured staff there would be no job cuts.
Both sources most well-liked to be nameless as they lacked authorisation to communicate to the media.
While Paytm Payments Bank declined to touch upon the staff reductions, a spokesperson from Paytm mentioned, “There are no layoffs here”. The spokesperson clarified that the continuing annual appraisal cycle would possibly lead to changes primarily based on efficiency evaluations and position suitability. The spokesperson mentioned that this course of differs from layoffs.
Following the deadline on Friday, prospects with present deposits within the financial institution’s accounts, wallets, and toll tags for freeway taxes can nonetheless entry them. However, the financial institution is not going to settle for any new deposits.
Paytm Payments Bank will retain its regulatory license except revoked by the RBI.
ALSO READ | Paytm Payments Bank, free Aadhaar updation, tax saving & extra: 9 cash deadlines in March 2024 that you shouldn’t miss
The second supply expressed uncertainty concerning the future position of Paytm Payments Bank. Both sources famous a scarcity of communication from Paytm concerning the following steps for banking staff.
According to the second supply, Paytm has moved roughly 100 staff from the banking unit.
Despite regulatory challenges, Paytm goals to proceed its digital cost companies by means of its app. The firm expects to receive a license from the National Payments Corp of India (NPCI) that might allow prospects to use the Paytm app for funds by way of the unified cost interface (UPI).
