“Paytm will overcome problems, bounce back:” Sharma

Paytm RBI

Rama Krishna Sangem

Paytm founder Vijay Shekhar Sharma voiced confidence that his digital payments pioneer will overcome regulatory setbacks in India this year and stage a comeback as a stronger company, say a Bloomberg report from Tokya on March 5,Tuesday.

“The biggest thing that I’ve learned is that many times your teammate and adviser may not be getting it correct,” Sharma said at a financial technology conference in Tokyo Tuesday, his first public appearance since Indian regulators ordered his banking affiliate to halt certain activities. “And it is important for you, yourself to be taking care of it versus just letting a teammate or a adviser suggest that what should it be.”


Sharma in troubles after RBI probe

Sharma is fighting to put his digital-payments company back on stable footing after regulators placed severe curbs on the banking affiliate, the backbone for much of its financial and payments services. Both Paytm and Paytm Payments Bank are part of the billionaire’s fintech empire, but the bank isn’t controlled by the publicly traded mobile wallet pioneer.

Sharma resigned from the Paytm Payments Bank’s board in February, less than a month after India’s banking regulator prohibited the bank from accepting new deposits in its customer accounts or wallets. The watchdog imposed the curbs after years of warning the flow of money and data traffic between the tightly regulated bank and the rest of the Paytm universe created accounting and supervisory problems.


“We value regulators role”

Despite the setbacks, Sharma said he values the role regulators play in creating a healthy environment for startups in India. “Things become very big and systematically important, very fast,” Sharma said. “We have been able to very happily see our regulator engage.”

Shares of Paytm, publicly traded as One97 Communications Ltd., have plunged about 45% since the regulators imposed the prohibitions on the bank on Jan. 31. Still, they’ve recovered from their lows after Paytm struck a deal with Axis Bank Ltd., tapping the lender to handle some of the tasks previously handled by Paytm Payments Bank. Paytm is currently working to add more banks as partners.

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at excelindiaweb123@gmail.com