Updated March 6th, 2024 at 07:57 IST

Vijay Shekhar Sharma desires to make Paytm a leader in Asia's financial landscape

Sharma acknowledged the rapid growth and systemic importance of Paytm, expressing gratitude for the positive engagement with regulators.

Reported by: Business Desk
Vijay Shekhar Sharma | Image:Republic
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Paytm news: Vijay Shekhar Sharma, the founder and CEO of fintech giant One97 Communications, broke his silence on Tuesday following the recent regulatory issues faced by Paytm Payments Bank. Speaking publicly for the first time since the controversy, Sharma emphasised the critical role of regulatory engagement and outlined his vision to position the company as a leader on the Asian stage.

Addressing an event in Japan, Sharma underscored the challenges that arise from regulatory ambiguity, stating that it adds stress to businesses. He acknowledged the rapid growth and systemic importance of Paytm, expressing gratitude for the positive engagement with regulators.

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The Reserve Bank of India (RBI) on January 31 imposed restrictions on Paytm Payments Bank Ltd., of which Sharma holds a 51 per cent stake, prohibiting the bank from conducting new transactions with customers after March 15. However, the regulator clarified that Paytm services such as UPI, not associated with the bank, could continue unaffected.

Sharma highlighted the importance of clarity amid uncertainty, emphasising the perseverance required to fulfill the company's mission. He reflected on the learning opportunities presented by challenges, noting the significance of staying committed to the company's objectives.

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Paytm has announced a collaboration with Axis Bank to streamline and secure merchant settlements through trustee-based escrow accounts. Additionally, the company's subsidiary, Pay Pay, operates in Japan, expanding its global presence.

Reaffirming Paytm's dedication to the digital payment ecosystem, Sharma expressed ambitions to establish the company as a frontrunner in Asia's financial landscape. He envisioned Paytm playing a pivotal role in shaping the future of financial systems in the region. Sharma also stressed the company's proactive engagement in forging alliances aimed at driving innovation and expanding its market reach.

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The shares of Paytm ended 3.16 per cent lower at Rs 405 apiece on the NSE on Tuesday, March 6, 2024.

(With PTI inputs.)

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Published March 6th, 2024 at 07:57 IST