Mumbai: State Bank of India on Saturday said it is ready to help Paytm customers who will be affected by the Reserve Bank of India’s order to stop almost all its activities from March 1.
Addressing the media during the third quarter earnings here, SBI Chairman Dinesh Kumar Khara ruled out going directly to the rescue of the once-storied Paytm, saying “we’ve no such plans” if the RBI cancels its payment bank licence.
Khara, however, was quick to add that if there is a direction from the RBI to any effect, we will be there. He did not elaborate, though. The SBI reported a 35 per cent fall in net profit to Rs 9,164 crore.
The RBI on January 31 directed Paytm Payments Bank to stop accepting deposits or top-ups in any customer accounts, wallets, Fastags and other instruments after February 29, effectively asking it to stop all its primary activities. However, the regulator said any interest, cashback, or refunds may be credited back to customers anytime. (Also Read: Rs 1 Lakh Penalty For Tobacco Product Makers If They Fail To Do THIS)
The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement. Asked whether SBI has any relationship with the fintech firm, Khara said, “there isn’t anything beyond the settlement part”.
Asked if the bank is ready to help the millions of Paytm customers who are merchants, he said, “absolutely.” “Our subsidiary SBI Payments are already in touch with these merchants, and we’re ready to lap them up anytime. We are ready to supply them our PoS machines and all other payment needs they face. While now there is a more focused approach to them this is broadly their job,” Khara. (Also Read: Fiscal Deficit Was 4.5% In UPA’s Terminal Year, It’s 5.8% In 2023-24 Under NDA: Chidambaram)
To another query whether the bank is ready to support Paytm merchants with their accounts, as any app is linked to a bank account, he said of course; we can take them on board in all possible manner.