RBI Run By 60-Year-Olds Who Do Not Have Faith In 40-Year-Old Mavericks: Ashneer Grover After RBI's Paytm Crackdown

Ashneer Grover, the Founder of BharatPe and former Shark Tank judge, in an interview with Mirror Now, credited Paytm as the trailblazer in India's fintech landscape. Grover highlighted Paytm's role as the cornerstone for numerous fintech ventures, including BharatPe, emphasizing that the latter owes its existence to the presence of Paytm.

During the interview, Grover offered his insights on the recent regulatory actions taken by the Reserve Bank of India (RBI) against Paytm Payment Bank. These comments come amid increased scrutiny on financial technology companies, and Grover's perspectives shed light on the broader implications of regulatory measures within the swiftly evolving fintech sector.

Addressing the recent regulatory actions in an episode of Urban Debate, Grover stated, "Paytm is the father of all fintechs in India. If it didn't exist, BharatPe wouldn't have existed."

According to Grover, Paytm laid the foundation in India, setting the stage for subsequent entrants like Google Pay and PhonePe on the consumer side, as well as players like BharatPe and Pinelabs on the merchant side. He described Paytm as the source and even likened it to the 'mother' of the ecosystem, suggesting that it played a fundamental role in shaping the digital transaction landscape in the country.

Paytm, being the first in the country to obtain a payments bank license, has operated for nearly five years and was poised to receive a small finance bank license, Grover noted in the interview with Mirror Now.

However, Grover highlighted the apparent setback for Paytm, as the RBI effectively revoked its payments bank license, consequently denying the potential small finance bank license. He questioned the rationale behind this decision, attributing it to a perspective that innovators and pioneers often operate on the fringes, and disagreements may arise on whether these boundaries are exceeded.

Grover criticized the RBI's stance, arguing that the punishment of canceling the license was severe. He attributed this decision to a lack of faith in younger individuals, particularly those around 40 years old, who are often seen as mavericks in the field. According to Grover, the regulatory skepticism is rooted in the traditional beliefs of the 60-year-olds at the helm of such decisions in the RBI, who may not fully trust individuals from a computer or programming background to effectively run complex systems.

RBI Imposes Restrictions on Paytm Payments Bank

Vijay Shekhar Sharma, the founder of One97 & Paytm and a prominent figure in India's fintech industry, is making headlines as the Reserve Bank of India (RBI) recently imposed new restrictions on Paytm Payments Bank Ltd.

Last week, the RBI asked Paytm Payments Bank to stop its main payment services by the end of February because of ongoing issues with not following the rules. This decision has an impact on One97 Communications, the company that owns Paytm. Even though the Paytm app and Paytm Payments Bank are separate, they share some features, like FASTag.