Vijay Shekhar Sharma Aims to Elevate Paytm to Asia Leadership Following RBI’s Action on Paytm Payments Bank

55

After regulatory actions severely impacted the banking affiliate Paytm Payments Bank Limited (PPBL), Paytm founder and former chief Vijay Shekhar Sharma expressed confidence on March 5 that his digital payments pioneer would overcome regulatory setbacks in India this year, as reported by Bloomberg on Tuesday.
Sharma emphasized the importance of personal involvement in managing regulatory issues, highlighting the need for proactive engagement rather than relying solely on advisors.
Having resigned from the PPBL board in February following the Reserve Bank of India’s (RBI) prohibition on the bank from accepting new deposits, Sharma maintained a positive outlook despite the challenges. PPBL restructured its board, appointing four new directors, while Sharma, who owns 51 percent of PPBL, stepped down as part-time non-executive chairman but continued leading Paytm.
The RBI’s restrictions on PPBL came after years of warnings due to regulatory and supervisory concerns arising from the flow of money and data traffic between the tightly regulated bank and the broader Paytm ecosystem.
While acknowledging the regulatory hurdles, Sharma expressed appreciation for the role of regulators in fostering a healthy startup environment in India. He highlighted the rapid growth of Paytm and the importance of addressing regulatory concerns as the company scaled.
Since the RBI imposed restrictions on PPBL on January 31, Paytm’s shares have experienced a significant decline of about 45 percent.
Sharma outlined his vision for Paytm to become a leader in Asia’s financial system, emphasizing the clarity of strategy and the importance of perseverance amid challenges.
Regarding the recent penalty imposed by the Financial Intelligence Unit (FIU) on PPBL for anti-money laundering law violations, Paytm clarified that the issues pertained to a discontinued business segment and that they had since enhanced monitoring systems and reporting mechanisms to comply with regulatory requirements.
Despite the regulatory setbacks, Sharma remained optimistic, seeing new opportunities and lessons to learn as Paytm navigates through challenges and pursues its mission in the evolving financial landscape.