Paytm crisis: User complaints spiked at Paytm Payments Bank even before RBI action

User complaints had spiked at Paytm Payments Bank much before the Reserve Bank of India (RBI) enforced its regulatory actions on the company. The payments bank saw a sharp jump in customer complaints in the last financial year, as revealed in the company disclosures. 

According to a report in The Economic Times, the payments bank reported 66,751 complaints across various categories in the fiscal year ended March 31, 2023. This is a steep two-and-a-half times jump from 26,692 complaints that were reported in the previous year. The number of complaints were 25,988 in FY21 and 14,369 in FY20.

These complaints are mostly user-generated and are solved by the bank within five-six days. 

Meanwhile, Paytm Payments Bank that has been embroiled in regulatory issues announced that it has reconstituted its board to include banking and administrative veterans. Paytm founder Vijay Shekhar Sharma also stepped down from the board of the payments bank. 

Paytm Payments Bank appointed ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and retired IAS Rajni Sekhri Sibal to the board as independent directors, parent company One 97 Communications stated in filings.

One 97 Communications also removed its nominee from the board and stated that Paytm Payments Bank will commence the process of appointing a new chairman.

The central bank has barred Paytm Payments Bank from receiving deposits and credits from customers after March 15 for persistent non-compliance and continued material supervisory concerns.