Open To Collaborate With Paytm If RBI Allows: Axis Bank
Axis Bank, a private sector lender, said it is willing to collaborate with Paytm if the Reserve Bank of India allows it to, according to Managing Director and Chief Executive Officer Amitabh Chaudhry at an event.
The vast bulk of Paytm's transactions, and approximately 75 per cent of its gross merchandise value, come from users who use the popular UPI for transactions on the app. “Subject to regulatory approval and if the regulator allows us to work with Paytm, of course, we will work with them, they are an important player,” Chaudhry said in a statement.
One 97 Communications, which operates the Paytm brand as a UPI app, currently has no relationships with any other commercial banks.
According to Arjun Chowdhry, Group Executive, Affluent Banking, NRI, Cards and Payments, Axis Bank, the company has been contemplating doing business with Paytm after 31 January.
However, he clarified that the discussions are for general business, not specific to any business. “We are in discussions with Paytm about our typical business services. After the development on 31 January, we are discussing new things,” Chowdhry added.
Paytm is facing intense regulatory and investor scrutiny after the RBI ordered Paytm Payments Bank, another unit of billionaire Vijay Shekhar Sharma’s fintech empire, to stop accepting deposits in its accounts or popular digital wallet after 29 February, dealing a massive blow to the founder's ambitions.
