After the RBI's directive on the fintech's lending arm, the number of job seekers from fintech Paytm reportedly increased five times in the previous fifteen days.
In a Moneycontrol report, staffing agency Xpheno stated that over "6,000 active and accessible talent" from fintech was currently available on the job market, with 70% of the overall accessible talent from Paytm having "gotten active in the last 7 days".
The Reserve Bank of India prohibited the institution last week from making any more deposits or credit transactions in client wallets, cards, or accounts beyond February 29. The bank's license is reportedly going to be revoked, possibly as soon as next month. The report claims that the development has caused anxiety among Paytm employees. Recently, Fintech announced the layoff of 1,000 workers citing automation from artificial intelligence.
Vijay Shekhar Sharma, the founder of Paytm, promised staff members during a town hall meeting that there would be no layoffs. "You are safe and secure because you are a member of the Paytm community. At a virtual town hall on Saturday with staff members of Paytm Payment Bank Ltd (PPBL), Sharma stated, "Many banks are helping us."
As the problem at the fintech company deepens, employees are seeking safer pastures due to the worry caused by the RBI limitations. Resumés are apparently flooding recruitment businesses; one platform reportedly received 300–400 CVs, most of them from junior to middle management.
Tuesday morning saw a 10% decline in One 97 Communications Ltd. (Paytm) shares, bringing its four-day losing streak to 48%. This occurred after Jio Financial Services Ltd. (JFS) denied negotiating with Paytm to acquire the latter's wallet business. The speculative media stories were refuted by Paytm, which described them as "baseless and factually incorrect."
