MUMBAI: Paytm founder & CEO Vijay Shekhar Sharma who has been steering the firm through one of its biggest crises following the Reserve Bank of India (RBI)’s restrictions on the fintech’s banking unit said the company should have done and understood better.
“We had responsibilities which we should have fulfilled much much much better. We have learnt the lessons. The important thing is the kind of lessons as a technology company we had to learn, we just did not show up to those lessons. But now, we are far better,” Sharma said at an event in New Delhi on Saturday.
Earlier this year, the RBI imposed severe restrictions on Paytm Payments Bank (PPBL) due to persistent non-compliance.
On Jan 31, the RBI directed PPBL to stop accepting money in any customer account, including wallets and other prepaid instruments due to persistent non-compliance. The restrictions were put in place after March 15. Paytm which has slashed several jobs since the RBI move revealed wider losses of Rs 550.5 crore in Q4FY24 and said that it expects the full impact of RBI’s action on the business to play out in Q1FY25.
Sharma said that the govt’s supportive policies have helped Startups go mainstream and there was no better time for new founders to start up.
He said Paytm’s ambition is to contribute towards India’s vision of becoming a $5 trillion economy and the fintech would increasingly focus on mobile credit going ahead. The CEO said that providing scores of small businesses and the underserved individuals with access to formal credit will help in growth of the economy.
