Winning Bizness Desk

Mumbai. The Regional Labor Commissioner of Bangalore has issued a summons to Paytm's parent company One-97 Communications. The company has been accused of forcibly dismissing staff in violation of laws. According to the notice, Paytm's management and complainants have been asked to appear in the Labor Department's office with all the necessary records. Paytm's parent company One97 Communications launched the Paytm payment app in August 2009. Currently, Paytm has more than 30 crore users in the country. Paytm's market cap is Rs 29.39 thousand crores. Notably, On January 31, RBI imposed major business restrictions on Paytm Payments Bank, citing non-compliance with the rules for a long time. Then RBI issued a circular saying that money cannot be deposited in the account of Paytm Payment Bank after February 29. Money cannot be deposited in wallet, prepaid services, fastag and other services through this bank. However, later RBI extended this deadline till March 15. Deposits in Paytm Payments Bank have stopped after March 15. RBI had found major irregularities in Paytm's KYC, due to which customers were at serious risk. Paytm had not done the KYC of lakhs of customers. PAN validation of lakhs of accounts was not done. Single PAN was being used for multiple customers. On many occasions, wrong information was also given to RBI by the bank. RBI had also found a large number of inactive accounts.

What Paytm has to say?

In this case, Paytm's spokesperson said, 'We understand the importance of the contribution of all our employees and appreciate their dedication. The decision to relieve some employees is difficult and it has been taken only after deliberating on all available options.' The management team also said that it has tried to help the retrenched employees in every possible way and has maintained fairness and transparency throughout the process. The company's spokesperson said, 'We are there to talk about any kind of problem of the affected employees and find a solution to it. Apart from this, we will continue to work closely with all the concerned parties for the betterment of our employees.'

What is the whole matter

Few employees were forced to resign by the company without notice or package. They had lodged complaints through the Labour Ministry's Samadhan portal and other public mediums. In these complaints, re-appointment was demanded along with the necessary email. After the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank, this firm did a large-scale restructuring. Then many employees were laid off under this.