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

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

One97 Communications said in a statement that Paytm The number of workers in the 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). As part of the company’s restructuring efforts, the workers who resigned 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 about Rs 550 crore. It was a little 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. In May, Paytm’s share in total UPI transactions fell to 8.1 percent. Paytm does not control PPBL. However, it has a stake in Paytm. company Vijay Shekhar Sharma, founder and chief executive officer of Paytm, has a stake in the company. 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, fell by 2.6 percent for the first time since listing. The company’s revenue was about $ 22.7 billion.

UPI transactions set a record in May. Last month there were 14.04 billion UPI transactions, worth approximately $20.45 trillion. This is an increase of 6 percent in volume and nearly 4 percent in value, as compared to April. According to data from the National Payments Corporation of India (NPCI), this is a growth of nearly 49 percent in volume and 39 percent in value, as compared to the same month last year. Since the introduction of UPI, there has been a rapid increase in digital payments. With this, users can easily transfer payments from their smartphones.

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