Reconsider your action on Paytm or it will impact fintech ecosystem: Startup founders writes to RBI Gov, FM

In a notable show of solidarity, founders from leading startups, including Policybazaar’s Yashish Dahiya, MakeMyTrip’s Rajesh Magow, Bharat Matrimony’s Murugavel Janakiraman, and Innov8’s Ritesh Malik, have stepped forward to address the Reserve Bank of India (RBI) and Finance Minister Nirmala Sitharaman. 

Their concern? The recent directive that puts a halt to Paytm Payments Bank’s operations, including the onboarding of new customers and key banking services post-February 29.

The broader impact of RBI's restrictions

The collective concern voiced by these entrepreneurs highlights the perceived impact of the RBI’s restrictions on Paytm, stretching beyond the company to touch the Indian fintech ecosystem and the broader economy. 

The founders argue that the move could send a negative signal to the global business community, hinting at a possible overreach in the regulatory action taken against the fintech giant led by Vijay Shekhar Sharma.

Reassess the "proportionality of restrictions

In their letter, the founders asked RBI to reassess the "proportionality of restrictions" and to facilitate a constructive dialogue. They propose a "clear and practical window" for Paytm to address and rectify the identified deficiencies.

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