Bharat Pe co-founder Ashneer Grover has hit out at the Reserve Bank of India after the central bank barred Paytm Payments Bank from accepting new deposits from February 29.
In a post on social platform X, Grover said,"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. Startups have been biggest creators of market cap and employment in last decade."
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“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’ !” Grover added.
The Reserve Bank on Wednesday directed the lender to stop accepting deposits or top-ups in any customer accounts, wallets, FASTTags and other instruments after February 29.
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“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the central bank had said in a notification on Wednesday.
Paytm shares tumbles by 20%
Day after the announcement, Paytm shares tumbled by 20 per cent in the stock market. On Sensex, the Paytm stock was trading at ₹608, down from the previous day's close of ₹761.
The RBI on Wednesday ordered Paytm Payments Bank Ltd to stop its popular mobile wallet business along with other activities, citing persistent non-compliance and supervisory concerns. The stock fell by the most allowed in Mumbai trading, for its biggest intraday drop since 2021.