HDFC Bank’s country head for payments, Parag Rao, has disclosed that the bank is engaging in talks with Paytm, the popular fintech company. These discussions come as Paytm faces regulatory restrictions from the Reserve Bank of India (RBI). Despite the restrictions, HDFC Bank continues to emphasize its long-standing partnership with Paytm. Rao mentioned that the bank is closely monitoring the situation and is in a ‘wait and watch’ mode. This collaboration is not only due to their existing partnership but also due to the potential opportunities that arise as a result of market disruptions affecting rival companies. In fact, HDFC Bank has experienced a significant increase in traction for its payments app and merchant business since the restrictions on Paytm were implemented by the RBI. Rao also clarified that HDFC Bank’s partnership is with One97 Communications, the parent company of Paytm, and not with Paytm Payments Bank, which is currently facing regulatory scrutiny. The RBI’s restrictions on Paytm are set to take effect from February 29, and HDFC Bank will closely observe the events as they unfold over the next two weeks. While Paytm seeks a way out of the current regulatory restrictions, this strategic collaboration with HDFC Bank could potentially navigate and mitigate the challenges faced by Paytm.