
Vijay Shekar Sharma, founder and CEO of One97 Communications Limited, met with Reserve Bank of India (RBI) officials to discuss extending the timeline for shutting down Paytm Payments Bank.
Request for Extension:
Sharma and his team requested a one-month extension beyond the February 29 deadline. They argued that this extension would benefit both merchants and retail customers and ensure continuity of business.
Unlikely Approval:
RBI officials are unlikely to approve the extension request due to unresolved deficiencies over two years. They question how a few more weeks would resolve longstanding issues.
Need for Distancing:
Some officials suggest that a solution can only be found if Sharma and the current management distance themselves from the bank. They believe Sharma’s influence has hindered progress.
Diminishing Support:
Support for Sharma is decreasing among startup and fintech communities. Over 100 leaders reached out to the finance minister and RBI to ease restrictions on Paytm. However, major fintechs are distancing themselves from the issue due to allegations of wrongdoing.
why was the company allowed to go public when it was in the know of RBI regarding money laundering. Has SEBI ignored the RBI caution on the bank.
This has made more money of the public also to be laundered.
Poor minority retail investors will be the heavy loosers.