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Vijay Shekhar Sharma, founder and CEO of One97 Communications, the parent company of fintech giant Paytm, has said that technology is more important than technology as the company grapples with navigating its business model post-central bank restrictions. He said that his approach would focus on compliance. “The important thing for us to remember is that if we don’t put compliance and risk at the core of our business, it’s not going to be as big a business as we envision.As far as groups and entities are concerned, I We’re now looking at ‘compliance first, technology second’ approach,” Sharma said.
Sharma was interacting with analysts on Thursday night after the Reserve Bank of India (RBI) decided to ban Paytm Payments Bank from accepting new deposits and executing transactions from February 29 this year. . He answered questions about how the company manages compliance and governance at One97 Communications. Paytm’s share price plunged 20 per cent to Rs 609 per share on the Bombay Stock Exchange (BSE) within minutes of the opening bell of the stock market, sending the stock into a downtrend. The regulator cited “persistent non-compliance” and “significant supervisory concerns”. RBI said that no further deposits, credit transactions or top ups, except interest, will be allowed in customer accounts, prepaid products, wallets, FASTAg, National Common Mobility Card (NCMC) cards etc. from February 29, 2024 onwards. . Cashback or refunds can be deposited at any time.
Regarding the immediate action plan, Sharma added that Paytm will work in partnership with other banks rather than Paytm Payments Bank in the future. “Going forward, the keyword is that we will not work with Paytm Payments Bank, which means we will work with other banks. Overall, I would say this is a big speed bump, but with other banks With this partnership, we believe we’ll be able to see the features that are already in development in the coming days or quarters,” he explained. Paytm said in an exchange filing that it expects the central bank’s directive to impact its annual EBITDA (earnings before interest, tax, depreciation and amortization) in the range of Rs 30 billion to Rs 50 billion. He said there was.
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