Paytm Payments Bank faces staff reduction; 20% workforce to be impacted: Report | India Business News

Mar14,2024



Layoffs in Paytm Payments Bank: Digital payments platform Paytm Payments Bank is set to reduce its workforce by about 20% as it navigates uncertainties around its future operations. The move comes in response to the impending deadline imposed by reserve Bank of India (RBI) asked the bank to close most of its activities.
According to a Reuters report, Paytm Payments Bank has taken the initiative retrenchment of employees In various divisions including operations. As of December 2023, the bank employed 2,775 individuals, according to data from information provider Traxon.
Paytm, popularly known as One97 Communications, holds 49% stake in the bank. The RBI had in late January directed banks to stop accepting credit transactions or deposits in savings accounts, prepaid cards and digital wallets by March 15. compliance issues, Since then, Paytm shares have seen a steep decline, losing 54% of their value.
An employee at the banking unit told Reuters that due to the timing of the regulatory order during the appraisal session, those with lower ratings were being let go.
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He expressed disappointment because the management had initially promised no layoffs. Another employee at the banking unit confirmed that during a town-hall meeting in February, Paytm CEO Vijay Shekhar Sharma had assured employees that there would be no job cuts.
Both sources preferred to remain anonymous because they were not authorized to speak to the media.
While Paytm Payments Bank declined to comment on the staff cuts, a Paytm spokesperson said, “There are no layoffs here”. The spokesperson clarified that the ongoing annual appraisal cycle may result in adjustments based on performance appraisal and role suitability. The spokesperson said that this process is different from retrenchment.
After Friday's deadline, customers with existing deposits in bank accounts, wallets and toll tags for highway taxes can still access them. However, the bank will not accept any new deposits.
Paytm Payments Bank Its regulatory license will remain intact until canceled by the RBI.
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Another source expressed uncertainty about the future role of Paytm Payments Bank. Both sources noted a lack of communication from Paytm regarding next steps for banking employees.
According to another source, Paytm has removed around 100 employees from the banking unit.
In-spite of this Regulatory ChallengesPaytm aims to continue this digital payment services Through your app. The company is expected to receive a license from the National Payments Corp of India (NPCI) that will enable customers to use the Paytm app for payments through Unified Payments Interface (UPI).



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