Key Points
Paytm parent company One 97 Communications is planning to cut close to 20% of staff at its banking unit as there is uncertainty over its future due to the Reserve Bank of India's recent clampdown on its services..
Two sources told news agency Reuters that the company's decision to cut jobs from the payments bank is mainly due to the central bank's mandate to cease several key operations by March 15 due to ongoing compliance issues...
On January 31 this year, the RBI barred Paytm Payments Bank from accepting fresh deposits or top-ups starting from February 29..
"Since this regulatory order has coincided with appraisal season, employees with low ratings have been asked to leave," the first source, an employee at the banking unit, said.. "Employees are frustrated because the management has gone back on their word that nobody will be laid off," the source told Reuters...
In an internal town-hall meeting in February, Paytm CEO Vijay Shekhar Sharma assured the bank's staff there would be no layoffs, the second source told Reuters...
