Paytm is working, will keep working beyond February 29 as usual: Paytm founder Vijay Shekhar Sharma

Paytm founder Vijay Shekhar Sharma on Friday said that the app would continue to operate beyond February 29 and sought to allay users concerns even as the Reserve Bank of India imposed certain restrictions on the fintech company's associate bank from March.

"Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support.

For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance" Paytm founder Vijay Shekhar Sharma said in a post on X.

"India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it," the post on X added.

Paytm, a leading fintech company, on Thursday addressed analysts after directions given by the Reserve Bank of India (RBI) to its associate Paytm Payments Bank.

The founder and CEO of Paytm said that the company will continue to decline and decrease the "dependency" on its associate bank and will see through by accelerating its partnership with other banks.

He informed that the company had already started to work with other banks two years back and will now accelerate the plan to move to other bank partners.

"These are payment related relationships which means that all banks have necessary technology and capabilities," the CEO stated during a conference call with analysts.

"We are genuinely overwhelmed by the support that we have received from various banks, large banks of this country, and those who are already partners.

More regional and large banks have reached out at a very senior level to say that they will be very happy to help us," Vijay added.

Giving more insights, he said that taking a step forward, Paytm will now work with current, and many more incremental bank partners and going forward it will not be working with its associate bank.

Paytm is already in process of moving the nodal account to other large commercial banks which will be done before the due date- February 29, 2024.

During the call, Sharma said, "I can say that it is more of a big speed bump. But we believe that the partnership of other banks and capabilities that we have already developed will be able to see through in the next few days or quarter."