SBI Chairman Khara Invites Paytm Customers to Bank

SBI chairman Dinesh Khara has said that the bank is ready to provide all support to merchants who want to shift from Paytm Payments Bank, which is facing regulatory action from RBI. Khara said that SBI Payments, a subsidiary of the bank, can offer various payment solutions such as QR scan code, POS machines and app-based solutions. He also said that the bank is open to a one-time migration of accounts from Paytm Payments Bank, which has been ordered to stop basic payment services from February 29. Khara said that SBI has minimal business ties with Paytm, but is willing to help stabilize the system in any way.

According to reports, Paytm Payments Bank violated several rules related to KYC documents, which are essential for any financial services firm. This is the third time that RBI has taken action against the payments bank. In 2018, it was asked to stop onboarding new customers due to issues with its KYC process. The ban was lifted in January 2019. Then in March 2022, it was barred from onboarding new customers again and directed to appoint an external auditor.

Paytm founder Vijay Shekhar Sharma had said that the company believes in partnership with banks and will work with various other banks and not Paytm Payments Bank. He had also said that One97 Communications Ltd (OCL), the parent company of Paytm, already works with various other banks and Paytm Payments Bank was one of the key banks.