A day after the Reserve Bank of India (RBI) barred Paytm Payments Bank from accepting fresh deposits from February 29, the company's parent, One 97 Communications Limited (OCL), said that it is already working with other banks and will accelerate its plans and completely move to third-party partners.
In a regulatory filing, the company said, "OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products."
"We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL's journey is to continue to expand its payments and financial services business, only in partnerships with other banks," it added.
The company added that it expects this action to have an impact of Rs 300 to 500 crore on its annual EBITDA.
The RBI issued the order citing "persistent non-compliance" and "material supervisory concerns". It had barred the bank from taking new customers in March 2022. The company's stock hit the lower circuit on Thursday, falling 20 per cent.
More From This Section
In the filing, OCL said that its offline merchant payment network offerings, like Paytm QR, Paytm Soundbox, and Paytm Card Machine, will continue as usual, where it can onboard new offline merchants. Moreover, the Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants.
"The company has been informed that this does not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances," it added.
The filing also read that OCL's financial services like loan distribution, insurance distribution and equity broking are not related to the Paytm Payments Bank Ltd "in any way" and are expected to be "unaffected".