Don’t Panic! SBI Offers Alternatives to PayTM Merchants Facing Shutdown. State Bank of India Offers Relief to PayTM Users Amidst Payments Bank Shutdown.
State Bank of India (SBI) is extending a helping hand to merchants amidst regulatory actions taken against PayTM Payments Bank, stated chairman Dinesh Khara. The country’s largest lender expressed its willingness to assist merchants and is open to facilitating a one-time transfer of accounts from the troubled payments bank.
ED to Investigate Paytm Payments Bank for Alleged Fund Misappropriation: Report
In another development, Dinesh Khara, Chairman of State Bank of India, addressed the ongoing Paytm crisis, mentioning that SBI is reaching out to Paytm customers through its subsidiary, SBI Payments.
The challenges for fintech giant Paytm continue as Reuters reported on Saturday that the Enforcement Directorate (ED) will launch an investigation into Paytm Payments Bank if new allegations of fund misappropriation surface.
Revenue Secretary Sanjay Malhotra informed Reuters that any fresh allegations of money laundering against Paytm by the RBI would be thoroughly investigated by the Enforcement Directorate in accordance with the law.
Following a significant drop in its valuation to $3.7 billion after losing $2 billion on the Mumbai stock exchange this week, Paytm has faced substantial setbacks. Since its IPO in 2021, which valued Paytm at approximately $20 billion, the company’s stock has plummeted by 75%. Analysts at JP Morgan suggest that the company now faces the challenge of restoring its business credibility.
Khara stated, “We are committed to supporting merchants by providing QR scan codes, POS machines, and other necessary tools to prevent widespread industry disruptions.” Regarding the potential acquisition of a stake in Paytm, Khara mentioned, “We may refrain from doing so until we thoroughly evaluate the company’s financial statements, valuation, and other relevant factors.”