The Reserve Bank of India's (RBI) directive to halt business operations at Paytm Payments Bank has sent shockwaves through the stock market, with shares of Paytm's parent company, One97 Communications Limited, plummeting by 20% for the second consecutive day. Despite the market turmoil, founders of various Indian startups have united in support of Paytm's founder, Vijay Shekhar Sharma.
RBI's Action and Message From Paytm Supporters
This week, the RBI ordered Paytm Payments Bank to cease accepting fresh deposits, citing long-term non-compliance with central bank regulations, including issues related to customer due diligence, fund utilization, and technology infrastructure. In response, Indian startup founders have taken to social media to voice their support for Vijay Shekhar Sharma.
“Its Doglapan”: BharatPe's Ashneer Grover Criticizes RBI
BharatPe co-founder Ashneer Grover expressed his displeasure with the RBI's actions, labelling them as 'Doglapan' and warning that such moves could potentially stifle fintech growth in India.
Grover urged the Prime Minister's Office, the finance ministry, and Finance Minister Nirmala Sitharaman to address the situation promptly.
I don’t understand RBI. Clearly RBI does not want FinTechs in business - of late all regulations / moves are against Fintechs. Such moves will kill the sector altogether. The @FinMinIndia @nsitharaman @PMOIndia need to step in. Startups have been biggest creators of market cap…— Ashneer Grover (@Ashneer_Grover) January 31, 2024
Vijay Shekhar Sharma Is A Resilient captain: Prafull Billore
Prafull Billore, owner and founder of MBA Chaiwala, hailed Vijay Shekhar Sharma as a "beacon for the company's future" amidst challenges. Billore emphasized Sharma's unwavering determination and visionary leadership, portraying him as a resilient captain steering Paytm through turbulent times.
Amidst stormy challenges, Vijay Shekhar Sharma steers Paytm with unwavering determination. A visionary leader, he navigates turbulence with resilience. In the face of adversity, Sharma's tenacity shines, a beacon for the company's future. Paytm's captain stands strong, charting a… pic.twitter.com/l7SJ2HZaXr— Prafull Billore (@pbillore141) February 1, 2024
VS Sharma Has Done Many First’s In The Country : Keval Bhanushali
Keval Bhanushali, CEO of 1 Finance, highlighted the cultural differences between India and the United States, criticizing the shallow mindset that revels in an entrepreneur's downfall. Bhanushali advocated for considering management changes before abruptly slamming the doors on the nation's largest listed fintech.
The basic difference between india & US will be the shallow mindset of seeking pleasure in an entrepreneur’s downfall. We have seen it in airlines & we are starting to see it in Fintech.— Keval Bhanushali - 🦅 (@kevalb26) February 1, 2024
Paytm is a tale of indian buoyancy & vijay shekhar sharma has done many first’s in a country…
Vijay Shekhar Sharma Will Overcome The Challenge: Ravi Karkara
Ravi Karkara, co-founder of AI For Food, offered words of encouragement to Vijay Shekhar Sharma, expressing confidence in his ability to overcome the challenges and rise to greater heights.
"Thank you everyone for your relentless support. Obviously, a conversation at a wider level should help," says Paytm Founder, Vijay Shekhar Sharma @vijayshekhar You will Overcome and rise higher 🔜 pic.twitter.com/7hgTDY5pTt— Ravi Karkara (@ravikarkara) February 1, 2024
Kritarth Mittal Stands in Solidarity
Kritarth Mittal, founder of startup Soshals, declared unwavering support for Vijay Shekhar Sharma, emphasizing that the entrepreneurial community stands united behind him.
This man deserves all the love & respect.— Kritarth Mittal | Soshals (@kritarthmittal) February 1, 2024
RBI imposed major business restrictions on Paytm Payments Bank.
The company stocks got tanked by 20%.
People on Twitter are cheering.
And all he has to say is:
"Indian startup dream must overcome every situation collectively" —… pic.twitter.com/go4t03DklH
Arindam Paul Advocates for Unity
Arindam Paul, Founder of Atomberg Tech, criticized the scarcity mindset among Indians and urged society to support one another's success. He predicted Paytm's eventual return, citing Vijay Shekhar Sharma's humility and resilience.
Indians really have a scarcity mindset. Seen so many people cheering PayTM’s current RBI crisis with the smug “I told you so” vibes.— Arindam Paul (@arindam___paul) February 1, 2024
These are the same people who also cheered when Edtech faced issues or GST hit the gaming industry or when Zomato shares tanked
We as a society… pic.twitter.com/1tT0DQdUBs
Swapnil Srivastav Calls for PMO's Intervention
Swapnil Srivastav, founder of Kidbeaofficial, highlighted the potential impact of these restrictions on a public-listed company like Paytm and urged the Prime Minister's Office to intervene for the "Ease of Business" for startups.
Paytm is now a public listed company, and these restrictions will hit the public so hard tomorrow in the market!— Swapnil Srivastav (@theswapnilsri) January 31, 2024
I hope PMO will step in to provide “Ease of Business” to all the startups, who are actually the back bone of emerging Indian economy. 🙏🇮🇳 pic.twitter.com/K2vIGScpAY
Dr. Ritesh Malik Criticizes RBI's Decision
Dr. Ritesh Malik, Founder of Innov8cowrk, deemed the RBI's actions against Paytm as unjust and expressed solidarity with Vijay Shekhar Sharma, acknowledging the challenges faced by entrepreneurs.
He’s the real deal!! I’m so grateful to have him as a close friend \ mentor / guide & family!! He’s not an entrepreneur alone / he’s a revolutionary!! More power to him always 🤗🇮🇳 @vijayshekhar sir! https://t.co/i6S4zt39GI— Dr Ritesh Malik (@drriteshmalik) February 1, 2024
Vijay Shekhar Sharma's Response
Meanwhile, Paytm's founder, Vijay Shekhar Sharma, characterized RBI's restrictions as mere "speed bumps." He reassured stakeholders that the company would reduce dependency on its associate bank and accelerate partnerships with other banks to navigate through the challenges.
To every Paytmer,— Vijay Shekhar Sharma (@vijayshekhar) February 2, 2024
Your favourite app is working, will keep working beyond 29 February as usual.
I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full…
As the RBI's crackdown on Paytm continues to reverberate, the outpouring of support from fellow startup founders signals a united front within the Indian entrepreneurial community. The rallying cry emphasizes the need for a collaborative approach to address challenges and highlights the resilience and determination of Vijay Shekhar Sharma in steering Paytm through turbulent times.
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