Key Takeaways from Paytm Conference Call After RBI Ban


One 97 Communications Limited recently conducted a conference call on February 01, 2024, shedding light on the RBI’s directives to Paytm Payments Bank (PPBL), the company’s relationship with PPBL, and its future strategies. Here’s a breakdown of the key takeaways:


  • Paytm users can utilize Paytm Payments Bank account balances until February 29, 2024, with restrictions on adding incremental money after this date.
  • Paytm is severing ties with PPBL and actively seeking collaborations with other banks to reduce dependence on PPBL.
  • Despite the challenges, Paytm has received support from prominent banks, ensuring the continuity of its operations and partnerships.

Financial Impact:

  • Anticipates a worst-case annual EBITDA impact ranging from INR 300 crore to INR 500 crore, primarily affecting the wallet and merchant services.
  • Estimated impact on payment-related revenues is expected to be less than 15-20%, with efforts to offset through net payment margin impact and other savings.

Operational Changes:

  • Initiatives involve modifying QR codes for offline merchants and transitioning settlement accounts for online merchants to alternative banks.
  • Temporary disruption in Paytm’s lending business due to changes in repayment accounts, affecting the origination of new loans.

Strategic Moves:

  • Actively engaging with other banks for partnerships and exploring options to offer alternative products to customers.
  • Emphasizing its technological prowess, customer acquisition capabilities, and commitment to innovation despite structural changes.

Migration Process:

  • Migration efforts include finding partner banks, evaluating commercial aspects, and deciding on migration methods, with ongoing discussions with regulatory authorities.
  • Paytm aims for a seamless transition, focusing on retaining merchants and users through proactive communication and partnerships with other banks.


  • Minimal impact on Monthly Transaction Units (MTU) expected, given the dominance of UPI transactions over wallets.
  • Paytm expresses confidence in mitigating the impact and offsetting factors over time, emphasizing its commitment to meeting migration timelines.

Future Initiatives:

  • Exploring opportunities for product expansion and partnerships with other banks after the regulatory embargo on Paytm Payments Bank.
  • Demonstrating confidence in technology, customer-centric approach, and innovation as key strengths for future growth.

Source PDF