Ashneer Grover, former founder of fintech firm BharatPe, has come out swinging again for crisis-hit Paytm. After the Reserve Bank of India (RBI) had directed Paytm Payments Bank Ltd (PPBL) to halt new customer onboarding and enforce strict operational restrictions due to ongoing noncompliance and supervisory concerns, Grover had accused market regulators and the government of “doglapan”.
At the time, Grover took to X to say, “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.” The former CEO and founder of BharatPe, said, “Startups have been biggest creators of market cap and employment in last decade. Today IIM and IIT are struggling to place people – we as a country cannot afford such overreach ! Tom-Tom-Ing @UPI_NPCI to the world and punishing pioneers in the space is pure ‘Doglapan’!”
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Grover has hit out again, this time specifically directing his barbs and criticism at RBI, criticising the Reserve Bank of India for what he calls “punitive action” against Paytm Payments Bank. In an interview with MirrorNow, Grover called RBI’s action an “overreach”, adding that the message being sent is that “banks are (systemically) important, but fintechs are not”.
Grover acknowledged the significance and impact of Paytm, stating, “Paytm is the father of all fintechs in India. If it didn’t exist, BharatPe wouldn’t have existed.”
According to Grover, regulatory scepticism and consequent actions are a result of the traditional beliefs of the “60-year-olds” at RBI, who may not fully trust individuals from a computer or programming background to effectively run complex systems.
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“In the RBI, individuals responsible for making decisions and handling calls are typically around 60 years old. They have experience managing a system of banks. However, there seems to be a lack of trust in a 40-year-old individual, especially if they are considered a Maverick, to run a core system,” he said.
Grover added, “This lack of faith is observed among those in power and involved in making regulations in India. Specifically, there is scepticism towards a 40-year-old with a background in the computer or programming domain when it comes to running any system. This sentiment appears to be a manifestation of a broader perspective within the institution.”
“In RBI’s view, Paytm is not systemically important, “if it dies, it dies, what do we care?”,” he said action against Paytm is punitive punishment in comparison to action taken against banks. “I think it is an overreach.”