RBI Paytm, which is in trouble due to the restrictions, is also in talks with HDFC Bank in an attempt to get out of the crisis. A senior official of the bank gave this information on Tuesday. HDFC Bank is the largest lender to the private sector. Parag Rao, country head (payments), HDFC Bank, said the bank is also in talks with Paytm considering its partnership in the acceptance and aggregator sector. However, he said that the bank is following a ‘wait and watch’ policy in this matter.
Paytm has sought support from many banks
After the restrictions of the Reserve Bank, Paytm has contacted many big banks for support. He is also in talks with HDFC Bank in this regard. When asked about this, Rao said, “Paytm has been a partner for years for our acceptance business, our aggregator business. In the current situation we do not know much about what is happening. But we are talking. We are waiting and seeing how the events unfold.
Partnership with One97 Communications
However, Rao clarified that HDFC Bank’s partnership with Paytm is with parent company One97 Communications and not with Paytm Payments Bank. The RBI had last Wednesday directed Paytm’s unit Paytm Payments Bank Limited (PPBL) not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. To this, Rao said that every ‘upheaval’ in the market opens up opportunities for other participants. Because savvy customers reorganize themselves.
The bank will keep an eye on the incidents
He said that attraction is also being seen for Fastag, prepaid card offering and sound box. Along with this, Rao said that after the severe ban by RBI on Paytm, the attraction towards HDFC Bank’s payment app and shopkeeper business has increased. Rao said the restrictions imposed on Paytm will be effective from February 29 and HDFC Bank will keep an eye on the developments over the next two weeks.
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