Paytm's founder Vijay Shekhar Sharma assures users app will work beyond Feb 29

Vijay Shekhar Sharma, the founder of Paytm, reassured users that the app will remain operational beyond February 29, addressing concerns following the Reserve Bank of India's (RBI) actions. Taking to X (formerly Twitter), Vijay Shekhar Sharma said, “To every Paytmer, Your favourite app is working, and will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serving our nation in full compliance".

Expressing confidence in India's continued progress in the digital finance sector, he said, “India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it". Following the Reserve Bank of India's notice on January 31, which prohibited Paytm Payments Bank from offering banking services after February 29 due to compliance issues, the central bank took stringent penal action against Paytm without disclosing specific reasons. Despite this, the company has been reassuring users that all services linked to Paytm Payments Bank will be seamlessly transferred to other lenders. Consequently, it has been affirmed that Paytm services will not face any disruption starting from March 1.

Earlier, Vijay Shekhar Sharma said, “This is an opportunity for us to come out better, stronger, abler, and more capable for the regulator’s eye and we are going to make sure that we will get out of this situation". Amidst robust selling pressure, Paytm's share price experienced a significant decline. For the second consecutive session, the stock triggered its 20 percent lower circuit, opening at Rs 487.05 compared to the previous day's close of Rs 608.80 on the BSE. In the preceding session, Paytm's share price also witnessed a 20 percent drop.