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Paytm Payments Bank Limited (PPBL) announced on July 20, 2024, that wallets without a balance or transactions for more than a year would be closed. As indicated by PPBL’s site, clients with lethargic Paytm Wallets will be informed and allowed a 30-day cautioning period preceding the closure.
Accounts at Paytm with no activity and no balance will be closed
The closure will take effect on July 20, 2024, for wallets with no balance and no transactions for at least a year. In March, the Reserve Bank of India (RBI) issued an order stating that PPBL will not be able to accept new deposits or approve credit transactions after March 15, 2024.
In spite of the RBI guideline, existing equilibrium can in any case be removed with no impediments.
The safety of any current funds in the wallets or accounts is unaffected by this order. Banks have advised customers to either activate or close dormant accounts and wallets; on the off chance that they don’t, they will consequently nearby the cutoff times.
Clients Should Utilize Wallets To Forestall Computerized Wallet Closure
Customers must continue to use their wallets, according to PPBL, in order to prevent automated wallet closure. To protect the honesty and usefulness of advanced wallets inside the monetary framework, the mandate conforms to RBI necessities.
This action is one part of a larger regulatory effort to ensure that banking regulations are followed and digital financial services are simplified.
In order to save Rs 500 million, Paytm can fire up to 6500 workers
One97 Communications, Paytm’s parent company, is said to be planning significant layoffs with the goal of cutting 5,000 to 6,300 jobs in order to better manage costs. The company is dealing with financial and regulatory issues that have had a significant impact on its revenue and profitability, so this move is timely.
There could be a reduction of 5,000 to 6,300 employees as a result of the layoffs, which represent 15-20% of the workforce. One97 Communications’ broader strategy to cut employee costs by 400-500 crore in the current fiscal year includes this step. The company had an average of 32,798 employees on the payroll in FY23, out of which 29,503 were actively employed. The all out worker costs rose by 34% year-on-year to ₹3,124 crore in FY24, making labor force decrease a basic measure for cost control.