Fintech firm One97 Communications which goes by the brand name of Paytm released their Q1 results on Friday. During the April-June quarter, the company narrowed its loss to ₹357 crore which was a sharp decline from ₹6,444 crore in the corresponding period last year. Paytm founder and CEO Vijay Shekhar Sharma talked about the growth of the business on Saturday and said Paytm expects to generate free cash flow by the end of this year.

During an earnings call with news agency PTI, Vijay Shekhar Sharma highlighted that the company’s growth during the quarter ending in June 2023 was primarily driven by its advancements in the domains of payments, financial services, and commerce.

“We are on our committed guidelines of becoming free cash flow positive by the year-end,” Sharma said.

Paytm CEO on RBI’s action against Paytm Payments Bank
The CEO shared an update on the Reserve Bank of India’s (RBI) bar on the onboarding of new customers by Paytm Payments Bank and said the company has submitted the compliance report with the central bank and it is currently under review. Vijay Shekhar Sharma added that the central bank has taken longer than expected to approve their request, but the company expects it soon.

In the financial year 2022, the Reserve Bank of India (RBI) issued a directive to Paytm Payments Bank (PPBL) to halt the onboarding of new customers starting from March 1, 2022.

In FY2023, the central bank took a step further by appointing an external auditor to conduct a thorough audit of PPBL’s systems. This audit aimed to assess various aspects, including IT outsourcing processes and operational risk management, with a particular focus on Know Your Customer (KYC) procedures.

On 21 October, 2022, Paytm Payments Bank received the final audit report from the RBI, which emphasized the need for continuous improvement in the strengthening of IT outsourcing processes and operational risk management, specifically regarding KYC and related practices at the bank.

Source By: livemint

Share: