Paytm captain stands strong Indian entrepreneurs defend Vijay Shekhar Sharma in the face of restrictions from the RBI

Indian startup founders have rallied around Paytm CEO Vijay Shekhar Sharma following the Reserve Bank of India's (RBI) directive for his payment bank to shut down operations.The RBI issued an order this week for Paytm Payments Bank to cease taking new deposits in its popular digital wallets or accounts as of March. After years of breaking central bank regulations on customer due diligence, the use of funds, and technological infrastructure, Paytm Payments Bank was hit with legal action.Following the RBI's move, a number of Indian company founders attacked the central bank and supported the CEO of Paytm. The owner and creator of MBA Chaiwala, Prafull Billore, referred to Paytm CEO Vijay Shekhar Sharma as "a beacon for the company's future".Paytm CEO Vijay Shekhar Sharma was referred to as "a beacon for the company's future" by MBA Chaiwala's owner and founder, Prafull Billore.RBI Issues a Speed Increase Sharma stated on a conference call on February 1st that the directive from the Reserve Bank of India (RBI) to terminate nearly all of Paytm Payments Bank's services after February 29th is merely a roadblock. He went on to say that the business will keep losing ground, becoming less dependent on its associate bank, and persevere by forging closer ties with other banks."On behalf of Paytm, this is more of a speed bump, but we believe in partnership of the banks and we will be able to see to the same in the next few days," Sharma stated."The support we have received from numerous banks, major banks in this nation, and those who are already partners has truly astounded us.

Senior representatives from a number of regional and big banks have contacted us and said they would be delighted to assist us," he continued.Investors were notified by Sharma that the company has been working with other banks for the past two years and will now move more quickly toward using other bank partners. During a conference call with investors, the CEO said, "These are payment-related relationships, which means that all banks have necessary technology and capabilities."Paytm Payments Bank was one of the important banks that One97 Communications Ltd. (OCL) already works with in addition to other banks. It is apparent that going forward, we would collaborate with a number of other banks rather than Paytm Payments Bank (PPBL). The transfer of nodal accounts to other banks is currently underway at OCL and PPSL, and these directives have no bearing on marketing business services," Sharma continued.The startup community has come together to support Sharma in the face of regulatory obstacles in response to the RBI's most recent rules, which have an effect on Paytm's banking services. As a result of the Reserve Bank of India's (RBI) recent crackdown, Paytm Payments Bank will no longer be able to provide its clients with a number of essential services starting on February 29, 2024.23 hours prior