HDFC Bank is “in talks” with its long-time partner Paytm as the fintech firm tries to find a way out of the Reserve Bank of India’s current restrictions, a top executive at the largest private sector lender said on Tuesday.
Also read: Paytm CEO Vijay Shekhar Sharma meets finance minister amid regulatory concerns: Report
Parag Rao, country head, payments, HDFC Bank, stressed that the bank would be in talks with fintech companies even considering its partnerships in the acceptance and aggregation space and said the bank is currently in a “wait and see” mode.
Rao was responding to a question on reports that Paytm is seeking support from major banks.
“Paytm has been a partner for our acceptance business and aggregator business for many years. In the current situation, we don’t know much about what is going on but we are talking and we are waiting and watching how events unfold. This is That’s all I can say now,” Rao said.
At an event to launch new credit card proposals for small businesses, he also said HDFC Bank’s traction with its payments app and merchants has “increased significantly” since the Reserve Bank of India imposed tight restrictions on Paytm commerce.
Rao said every “upheaval” in the market that affects competitors creates opportunities for other players as smart customers recalibrate themselves. Fatag, prepaid card products and speakers are also attractive, he added.
Rao made it clear that HDFC Bank’s partnership with Paytm is with its parent company One97 Communications and not with Paytm Payments Bank, which is under regulatory scrutiny.
Rao said the restrictions on Paytm will come into effect from February 29 and HDFC Bank will monitor the development in the next two weeks.
Meanwhile, Rao also said the bank will launch a completely revamped mobile app within two months. He added that the new platform will provide better access to all modern services and guide users to the right services.
The bank on Tuesday launched four credit cards for small businesses, the most unique of which carries an enrollment fee of up to Rs 10,000.
The company, which first launched a dedicated credit card for small and medium businesses more than two years ago, now has more than 3.5 million credit cards, said Rao, adding that the company has leveraged lessons learned from it into new products series.
It is also considering launching a dedicated credit card for gig economy workers and freelancers. Rao said the card’s benefits will include services like working in coworking spaces and accounting packages.
(This story has not been edited by News18 staff and is published from associated news agency – PTI)
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