Paytm Lays Off Employees Amid RBI Ban: Outplacement Support Offered

Fintech firm One97 Communications, owner of Paytm, is laying off employees amid the RBI's ban on Paytm Payments Bank services. The firm is providing outplacement support and bonuses to affected staff. The ban has deepened Paytm's losses, prompting restructuring and pruning of non-core business lines.

One97 Communications, the company behind the Paytm brand, announced on Monday that it is laying off an undisclosed number of employees. The move comes as the firm grapples with the Reserve Bank of India's (RBI) ban on Paytm Payments Bank services, which has significantly impacted its operations.

As part of its commitment to a smooth transition for those affected, Paytm is offering outplacement support. The company's human resource teams are actively working with over 30 companies currently hiring, assisting employees who opted to share their information for immediate outplacement. Additionally, the company is disbursing due bonuses to ensure a fair and transparent process.

The RBI's ban, effective from March 15, prevents Paytm Payments Bank from accepting deposits or handling credit transactions, which has led to a widening loss for Paytm to Rs 550 crore for January-March 2024. In response, One97 Communications is pruning its non-core business lines and leveraging AI to maintain a leaner organization structure, aiming towards profitability.