HDFC Bank talking to Paytm; in wait-and-watch mode: Exec

NEW DELHI: HDFC Bank is ‘talking’ to its longstanding partner Paytm as the fintech tries to find a way out of the current restrictions placed by RBI, a senior executive at the largest private sector lender said on Tuesday.

Stressing that the bank would have been conversing with the fintech even otherwise given its partnership in the acceptance and aggregator space, HDFC Bank’s country head for payments Parag Rao said it is in a ‘wait and watch’ mode.

Rao was replying to a question on reports about Paytm reaching out to large banks for support. “Paytm has been a partner over the years for our acceptance business, for our aggregator business. Under the current circumstances, we don’t know too much about what is happening but we are talking, we are waiting and watching to see how events develop. That is all I can say right now,’’ Rao said.

At an event to launch a new credit card proposition for small businesses, he also said ever since RBI placed severe restrictions on Paytm, there has been a ‘significant increase’ in the traction witnessed by HDFC Bank for its payment’s app and also merchant business. Every ‘upheaval’ in the market which impacts a rival opens up opportunities for other participants as the smart customers realign themselves, Rao said.