Paytm lay offs Hundreds of Workers After RBI ban on its Banking Unit

Workers have been laid off from One97 Communications, Paytm’s payment services company. Earlier this year, the Reserve Bank of India (RBI) had ordered the closure of Paytm’s banking unit. Since then the company is facing difficulties. There has also been a huge fall in the share price of Paytm.

One97 Communications has said in a statement that the number of workers in Paytm’s sales division has decreased by about 3,500. The main reason for this is the ban imposed by RBI on the services of Paytm Payments Bank (PPBL). Workers who have resigned as part of the company’s restructuring efforts are being helped for placement in other companies. Apart from this, the outstanding bonus of the workers will also be paid. During January to March, Paytm’s loss increased to approximately Rs 550 crore. This was slightly more than Rs 167 crore in the same period last year.

Last month, Paytm’s share in Unified Payments Interface (UPI) transactions declined for the fourth consecutive month. Paytm’s share in total UPI transactions declined to 8.1 percent in May. Paytm has no control over PPBL. However, the company’s founder and chief executive officer, Vijay Shekhar Sharma, has a stake in it. The company has said that it will cut its non-core assets. In the fourth quarter of the last financial year, the revenue of One 97 Communications, which runs Paytm, declined by 2.6 percent for the first time since its listing. The company’s revenue was approximately $22.7 billion.

UPI transactions have created a record in May. Last month, there were 14.04 billion UPI transactions whose value was approximately $20.45 trillion. This is an increase of six percent in terms of volume and almost four percent in value compared to April. According to National Payments Corporation of India (NPCI) data, this is a growth of about 49 percent in volume and 39 percent in value compared to the same month last year. Digital payments have increased rapidly since the introduction of UPI. With this, users can easily transfer payments from their smartphones.

(This news has not been edited by NDTV team. It is published directly from the syndicate feed.)