Paytm founder Vijay Shekhar Sharma has found strong support from his fellow startup founders. A group of startup founders have written to Reserve Bank of India governor Shaktikanta Das and FM Nirmala Sitharaman asking the regulator to “review” and “reconsider” its regulatory directive against Paytm Payments Bank’s operations. It is rather rarity for companies and its founders to seek such kind of a review by a financial regulator, especially RBI.
Signatories to the letter include Innov8 founder Ritesh Malik, Policybazaar’s Yashish Dahiya, MakeMyTrip’s Rajesh Magow and Bharat Matrimony’s Murugavel Janakiraman.
What the letter says
“We are particularly concerned about the potential ramifications of the current regulatory directive on Paytm Bank, extending far beyond the immediate impact on the company itself. This action, perceived as overly punitive, could send a negative signal to the global business community… a vibrant fintech ecosystem thrives on regulatory clarity, predictability and a supportive environment. While safeguarding financial stability remains paramount, achieving this objective should not come at the cost of stifling innovation and entrepreneurial spirit,” the founders said in their representation, urging also the Prime Minister to consider their plea.
The group also requested for a provision “granting Paytm Payments Bank a clear and practical window to address identified deficiencies and demonstrate compliance” and sought for “open dialogue and collaboration”.
On January 31, the Reserve Bank of India (RBI) told Paytm Payments Bank to stop accepting new deposits in its accounts and its digital wallets from March, citing supervisory concerns and non-compliance with rules.
Signatories to the letter include Innov8 founder Ritesh Malik, Policybazaar’s Yashish Dahiya, MakeMyTrip’s Rajesh Magow and Bharat Matrimony’s Murugavel Janakiraman.
What the letter says
“We are particularly concerned about the potential ramifications of the current regulatory directive on Paytm Bank, extending far beyond the immediate impact on the company itself. This action, perceived as overly punitive, could send a negative signal to the global business community… a vibrant fintech ecosystem thrives on regulatory clarity, predictability and a supportive environment. While safeguarding financial stability remains paramount, achieving this objective should not come at the cost of stifling innovation and entrepreneurial spirit,” the founders said in their representation, urging also the Prime Minister to consider their plea.
The group also requested for a provision “granting Paytm Payments Bank a clear and practical window to address identified deficiencies and demonstrate compliance” and sought for “open dialogue and collaboration”.
On January 31, the Reserve Bank of India (RBI) told Paytm Payments Bank to stop accepting new deposits in its accounts and its digital wallets from March, citing supervisory concerns and non-compliance with rules.
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