'The biggest thing that I’ve learned is…' Vijay Shekhar Sharma In His First Public Appearance Post-RBI Action

Sharma is working towards stabilising his digital payments firm following stringent regulatory restrictions imposed on its banking affiliate

While both Paytm and Paytm Payments Bank are integral to the billionaire's fintech conglomerate, the bank operates independently from the publicly traded mobile wallet pioneer ( Image Source :Getty )

Paytm founder Vijay Shekhar Sharma expressed optimism that his digital payments venture will navigate regulatory challenges in India this year and emerge as a stronger entity. “The biggest thing that I’ve learned is that many times your teammate and adviser may not be getting it correct,” said Sharma during his first public appearance post the Reserve Bank of India (RBI) action against the Paytm Payment Bank Limited in January.

“And it is important for you, yourself, to be taking care of it versus just letting a teammate or an adviser suggest that what should it be,” he said while speaking at a financial technology conference in Tokyo on Tuesday, reported Bloomberg.

Sharma is working towards stabilising his digital payments firm following stringent regulatory restrictions imposed on its banking affiliate, which forms the foundation for many of its financial and payment solutions. While both Paytm and Paytm Payments Bank are integral to the billionaire's fintech conglomerate, the bank operates independently from the publicly traded mobile wallet pioneer.

In February, Sharma stepped down from the board of Paytm Payments Bank shortly after India's banking regulator banned the bank from accepting new deposits into its customer accounts or wallets. The regulatory action came after prolonged concerns regarding the flow of funds and data traffic between the tightly regulated bank and other entities within the Paytm ecosystem, which led to accounting and supervisory challenges.

Even after these challenges, Sharma appreciated the regulatory role in fostering a conducive environment for startups in India. “Things become huge and systematically important very fast. We have been able to very happily see our regulator engage,” he said.

“Asia has an opportunity to build a financial system for the next generation. Make Paytm an Asia leader — in my lifetime, I would like to do that,” Sharma added.

“Ambiguity brings stress. When you are clear, when you know, then it is the perseverance on the mission that you are in. This is a great day when I have new lessons to learn and new opportunities to address,” he said at the event.

The shares of Paytm traded publicly under One97 Communications Ltd., experienced a significant decline of approximately 45 per cent following the regulatory restrictions. However, they have since rebounded from their lows after Paytm secured an arrangement with Axis Bank Ltd., enlisting the assistance of the lender to manage certain functions previously managed by Paytm Payments Bank. Paytm is presently in the process of expanding its network of banking partners.