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SBI comes forward to rescue Paytm customers, says 'will act on RBI direction'

The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement.

Edited By: Hritika Mitra @MitraHritika New Delhi Updated on: February 04, 2024 13:06 IST
SBI Chairman Dinesh Kumar Khara
Image Source : FILE/PTI SBI Chairman Dinesh Kumar Khara

State Bank of India (SBI) has come forward to help Paytm customers following a ban on the latter's activities by the Reserve Bank of India from March 1. SBI Chairman Dinesh Kumar Khara said, "If there is a direction from the RBI to any effect, we will rescue the once-storied Paytm." However, he said that the company has no plans of going directly into the matter addressing the media during the third quarter earnings. 

The RBI on January 31 directed Paytm Payments Bank to stop accepting deposits or top-ups in any customer accounts, wallets, Fastags and other instruments after February 29, effectively asking it to stop all its primary activities. However, the regulator said any interest, cashbacks, or refunds may be credited back to customers anytime.

Asked whether SBI has any relationship with the fintech firm, Khara said, "there isn't anything beyond the settlement part". Asked if the bank is ready to help the millions of Paytm customers who are merchants, he said, "absolutely."

"Our subsidiary SBI Payments are already in touch with these merchants, and we're ready to lap them up anytime. We are ready to supply them our PoS machines and all other payment needs they face. While now there is a more focused approach to them this is broadly their job," Khara.

To another query whether the bank is ready to support Paytm merchants with their accounts, as any app is linked to a bank account, he said, "Of course, we can take them on board in all possible manner."

(With inputs from PTI)

ALSO READ | Paytm Bank: Money laundering concerns, KYC non-compliance led to ban on PPBL by RBI

ASLO READ | 'Paytm will keep working beyond February 29', says Vijay Shekhar Sharma 

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