The next big worry for Vijay Shekhar Sharma

Even as Paytm battles an unprecedented crackdown on its payments bank, the fate of its payment aggregation business hinges on crucial clearances from the authorities.

A day after the central bank imposed sweeping restrictions on the operation of his payments bank, Vijay Shekhar Sharma, founder and CEO of Paytm, addressed a group of analysts last week to explain the next steps. 

Paytm’s damage-control strategy, as Sharma explained, would essentially entail replacing all of its tie-ups involving Paytm Payments Bank with other third-party lenders. This would ensure that the platform continues to offer UPI services, bill payments and (possibly) wallet services. Sharma also called the Reserve Bank of India’s action “a major speed bump” and predicted a one-time hit of Rs 500 crore on the company’s …

Author

Ashwin Manikandan

Ashwin covered fintech and banking at The Morning Context. Previously, he was at The Economic Times, where he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.

Writer

ashwin@mailtmc.com

Delhi