Paytm can overcome setbacks to lead in Asia, says Vijay Shekhar Sharma | Top Vip News

Paytm founder Vijay Shekhar Sharma expressed confidence that his digital payments pioneer will overcome regulatory setbacks in India this year and return as a stronger company.

“The most important thing I’ve learned is that many times your teammate and your advisor may not be understanding correctly,” Sharma said at a fintech conference in Tokyo on Tuesday, his first public appearance since Indian regulators ordered his banking subsidiary suspend certain activities. “And it’s important to take care of it yourself rather than just letting a teammate or advisor suggest what it should be.”

Sharma is struggling to get his digital payments company back on stable footing after regulators imposed severe restrictions on the banking subsidiary, the backbone of much of its financial and payments services. Both Paytm and Paytm Payments Bank are part of the billionaire’s fintech empire, but the bank is not controlled by the publicly traded mobile wallet pioneer.

Sharma resigned from the board of Paytm Payments Bank in February, less than a month after India’s banking regulator banned the bank from accepting new deposits into its customers’ accounts or wallets. The watchdog imposed the restrictions after years of warning that the flow of money and data traffic between the tightly regulated bank and the rest of the Paytm universe created accounting and oversight problems.

Despite the setbacks, Sharma said he values ​​the role regulators play in creating a healthy environment for startups in India.

“Things become very big and systematically important, very quickly,” Sharma said. “We have been very happy to see our regulator participate.”

Shares of Paytm, listed as One97 Communications Ltd., have plunged about 45% since regulators imposed the bans on the bank on Jan. 31. Still, they recovered from their lows after Paytm struck a deal with Axis Bank Ltd., tapping the lender to take over some of the tasks previously performed by Paytm Payments Bank. Paytm is currently working on adding more banks as partners.

“Asia has the opportunity to build a financial system for the next generation,” Sharma said. “Making Paytm a leader in Asia – in my lifetime, I would like to do that.”

Sharma owns 51% of Paytm Payments Bank, while Paytm owns the rest. The banking subsidiary reconstituted its board of directors following the regulator’s action and appointed four new directors. While Sharma has resigned from the board of directors of Paytm Payments Bank and stepped down as part-time non-executive chairman, he continues to lead Paytm, which he founded and has led for over a decade.

The regulator, the Reserve Bank of India, has said the action against Paytm Payments Bank was taken after it failed to correct course despite being given enough time. Sharma said he now has clarity on Paytm’s strategy, including creating new banking partnerships for the Indian market and geographical expansion to other Asian markets.

“Ambiguity creates stress,” he said. “When you have clarity, when you know, then you are in perseverance in the mission.”

“This is a great day where I have new lessons to learn and new opportunities to address,” he said.