The CEO of PAYTM released significant information. PAYTM and PAYTM PAYMENT BANK are independent businesses

 The CEO of PAYTM released significant information. PAYTM and PAYTM PAYMENT BANK are independent businesses

PAYTM is not the same as PAYTM PAYMENT BANK.

The Reserve Bank of India has placed some limitations on Paytm Payment Bank Limited. While the majority of Indian customers believe that Paytm Company and Paytm Payment Bank Limited are one and the same, the facts are slightly different. In order to provide us with more specific information, the Paytm Founder and CEO has released unique information.

Vijay Shekhar Sharma of Paytm defined the organization's structure.

October 21, New Delhi: Paytm Payments Bank Limited (PPBL) and One97 Communication Limited (OCL) are two distinct organizations, and their activities are maintained apart, as stated by Paytm Founder and CEO Vijay Shekhar Sharma on Saturday.

serving current clients rather than pursuing new ones

Speaking on One97 Communication's second quarter results—Paytm's parent company—Sharma said that expanding the loan business does not need acquiring new clients. He made this statement in reference to the limitations that the Reserve Bank of India (RBI) has placed on PPBL's ability to acquire new clients.

Possible effects of prohibition

PPBL was prohibited by RBI from accepting new clients as of March 11, 2022, for the fiscal year 2021–2022. "Paytm Payments Bank Limited and Paytm are two very different companies with a lot of differences," Sharma stated when discussing the effects of this prohibition.

Financial performance: updated data and revised projections

In comparison to the loss of Rs 571.5 crore in the same period previous year, Paytm reported a consolidated loss of Rs 291.7 crore for the July–September quarter of the current financial year. From Rs 1,914 crore in the same period last year to Rs 2,518.6 crore in the September quarter, the company's operational income increased by about 32%.

Is One97 Communication and PPBL the same business?

No, these two businesses are not the same, and neither is the way they operate.

Does Paytm need new users to operate its lending business?

No, according to Vijay Shekhar Sharma, it is preferable to concentrate on current clients in order to build a firm.

Why was PPBL banned by RBI?

The precise justifications for the prohibition are not made public.

In what ways has Paytm's financial performance changed from the previous year?

Paytm's operational income, financial services revenue, and loan disbursements have all increased, while its consolidated loss has shrunk.