Paytm's Vijay Shekhar Sharma's first public comments after RBI action; says firm will lead in Asia

Vijay Shekhar Sharma, the founder of Paytm, expressed his optimism about the company's ability to overcome regulatory challenges in India and emerge as a leading force in Asia. Despite recent setbacks, Sharma is confident that his digital payments platform will rebound stronger than ever, Sharma said at a Tokyo Conference as per a Money Control report.

“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.”

In response to regulatory restrictions imposed on Paytm's banking affiliate, Sharma has been working to stabilize the company's operations. Paytm Payments Bank, a crucial component of Paytm's financial services, faced severe limitations after Indian regulators restricted its ability to accept new deposits. Sharma, who resigned from the bank's board in February, acknowledges the challenges but remains steadfast in his commitment to navigate through them.

“Things become very big and systematically important, very fast,” Sharma said. “We have been able to very happily see our regulator engage.”

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

The regulatory constraints stemmed from concerns regarding the flow of money and data between the tightly regulated bank and the broader Paytm ecosystem. Despite these hurdles, Sharma emphasizes the importance of regulatory oversight in fostering a healthy startup environment in India.

The impact of these setbacks has been reflected in Paytm's stock performance, with shares plummeting approximately 45% following the regulatory restrictions. However, the company has shown resilience, with shares rebounding after securing a partnership with Axis Bank Ltd. Paytm aims to further bolster its operations by collaborating with additional banking partners in the near future.

“Ambiguity brings stress,” he said. “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., reported Money Control.

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