Axis Bank has expressed its readiness to work with Paytm, subject to approval from the Reserve Bank of India (RBI).
Amitabh Chaudhry, the Managing Director and Chief Executive Officer of Axis Bank, reportedly made the statement during an event.
Chaudhry highlighted Paytm’s importance in the market, noting that the majority of its transactions, approximately 75 per cent of the gross merchandise value, are facilitated through its popular UPI platform.
“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,” he stated.
One 97 Communications Limited, the parent company of Paytm, does not have any formal relationships with commercial banks for its UPI app since RBI’s crackdown on Paytm Payments Bank.
Arjun Chowdhry, Group Executive of Affluent Banking, NRI, Cards, and Payments at Axis Bank, revealed that discussions between Axis Bank and Paytm have been ongoing since before January 31.
However, he clarified that these discussions are related to general business matters and are not tied to any specific transactions.
“We are having conversations with Paytm for our normal business services. Post the development that happened on January 31, we are discussing new things,” said Chowdhry in an interview with a TV channel.
The regulatory environment surrounding Paytm has become increasingly stringent.
The RBI recently instructed Paytm Payments Bank Ltd, another arm of Vijay Shekhar Sharma’s fintech startup to stop accepting deposits in its accounts or digital wallets after February 29, impacting the company’s future prospects.