Axis Bank has indicated its willingness to collaborate with Paytm, provided that approval is granted by the Reserve Bank of India (RBI). Amitabh Chaudhry, the Managing Director and Chief Executive Officer of Axis Bank, reportedly made this statement during an event, acknowledging Paytm’s significant presence in the market. Chaudhry emphasized that approximately 75 per cent of Paytm’s transactions, measured by gross merchandise value, occur through its popular UPI platform. He stated, “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.”
Currently, One 97 Communications Limited, the parent company of Paytm, lacks formal relationships with commercial banks for its UPI app, following regulatory measures imposed by the RBI on Paytm Payments Bank. Arjun Chowdhry, Group Executive of Affluent Banking, NRI, Cards, and Payments at Axis Bank, disclosed that discussions between Axis Bank and Paytm have been ongoing since before January 31. However, he clarified that these discussions revolve around general business matters and are not tied to any specific transactions. Chowdhry stated, “We are having conversations with Paytm for our normal business services. Post the development that happened on January 31, we are discussing new things.”
The regulatory environment surrounding Paytm has become increasingly stringent, with the RBI recently directing Paytm Payments Bank Ltd, a subsidiary of Vijay Shekhar Sharma’s fintech startup, to cease accepting deposits in its accounts or digital wallets after February 29, affecting the company’s future prospects.
