Paytm Payments Bank to Cut About 20% Of Workforce Amidst RBI Action: Reports

Bengaluru: Paytm Payments Bank Limited (PPBL) is considering a 20% workforce reduction due to regulatory restrictions imposed by the Reserve Bank of India (RBI) and consequent uncertainty about the bank’s future.

The job cuts follow RBI’s directive for PPBL to halt key operations by March 15th due to compliance issues. This has shaken investor confidence in Paytm, the bank’s majority stakeholder, leading to a significant drop in share prices.

While sources claim employees were initially assured of job security, Paytm maintains these are performance-based adjustments coinciding with the annual appraisal cycle.

Despite the operational limitations, customers can still access existing deposits and wallets. However, the bank’s future role and the fate of its remaining employees post-March 15th remain unclear. Paytm is reportedly seeking a license to allow continued payments through UPI, but details on staff implications are scarce.