SBI Extends Helping Hand to Paytm After RBI Ban, Ensures Support for Users

State Bank of India (SBI) offers support to Paytm users post the RBI ban, assuring assistance in line with regulatory directives. SBI Chairman Dinesh Kumar Khara emphasizes readiness to aid millions of Paytm merchants.

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In a proactive move, the State Bank of India (SBI) has stepped in to assist Paytm users affected by the Reserve Bank of India's (RBI) ban on the fintech giant's operations starting March 1. SBI Chairman Dinesh Kumar Khara affirmed the bank's commitment to intervene as per RBI guidance. During the third-quarter earnings briefing, Khara addressed the media, stating, "If there is a direction from the RBI to any effect, we will rescue the once-storied Paytm."

The RBI's directive, issued on January 31, compelled Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, Fastags, and other instruments after February 29. This effectively halted all primary activities. The regulator, however, assured that any interest, cashback, or refunds owed to customers might be credited back at any time.

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Khara clarified SBI's relationship with the fintech firm, stating it was confined to settlement matters. When queried about the bank's willingness to aid Paytm's merchant base, consisting of millions of users, Khara responded affirmatively, stating, "Absolutely." He highlighted that SBI Payments, a subsidiary, was already in contact with these merchants, ready to offer point-of-sale (PoS) machines and address their payment needs.

Responding to whether the bank would support Paytm merchants with their accounts, Khara expressed a positive stance, saying, "Of course, we can take them on board in all possible manner." The Chairman emphasized a focused approach and preparedness to assist Paytm's vast user base, ensuring they seamlessly transition through the challenging period. This development falls under the business and finance category, illustrating collaborative efforts amid regulatory challenges in the fintech sector.