Paytm story - What went wrong...
- RBI invoked Section 35 of the Banking Regulation Act, 1949 on 31-01-2024
- paytm lost a market value of over 2 billion dollars
History of paytm's growth
- 2015 - paytm recieved initial approval from RBI
- 2017 - set up payments bank - PPBL
- June, 2018 - banned from onboarding new customers
- Jan, 2019 - ban lifted
- March, 2019 - notice from banking ombudsman - not monitoring an account that breached RBI's KYC norms
- Oct, 2021 - penalty of 1 crore for submission of incorrect information
- March, 2022 - stopping of onboarding new customers
- Oct, 2023 - penalty of 5.39 crore - multiple defiencies
- Jan, 2024 - based on the comprehensive system audit validation report by external auditors - due to persistent issues - RBI issued circular
Paytm is an innovative firm and innovative firms are not always comfortable with the regulators - Raghuram Rajan, former RBI governor
Composition
- Vijay shekar sharma - founder, chairman, managing director = 51% shares
- One 97 communications - 49% shares
- earlyinvestors of one97com - Alibaba and Antfin - both chinese firms
- later alibaba left the company
- paytm has 29 subsidiaries as of March, 2023
- one97com has 10 associate firms among which ppbl is the largest associate
