Ashneer Grover on Paytm Crisis: 60-year-olds running RBI do not...

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BharatPe criticised the Reserve Bank of India (RBI) for what he calls "punitive action" against Paytm Payments Bank (PPBL). In an interview with MirrorNow, Grover called the regulator's action an "overreach", adding that the message being sent is that "banks are (systemically) important, but fintechs are not". Disappointed by the lack of legislation, Grover said, "Seems to be a $20 billion glass ceiling and the moment you hit it it seems the only way to go is down.

Structurally we in India are not ready for big start-ups. Over the last 10 to 12 years startups in India have emerged organically, and people in the government are eager to click pictures with founders but in terms of legislation there has been no move." "We have 111 unicorns but none of them is considered systemically important for the economy, but these startups have driven the 6-7.5 percent GDP growth rate that we celebrate. They have brought in maximum FDI in India and created a maximum number of jobs, but see zero legislative support and as they become big you see these public problems," he added.

Grover acknowledged Paytm's pioneering role in India's fintech landscape, stating that the company is the cornerstone for various fintech ventures, including BharatPe. He added that while he is the founder of BharatPe, the company does owe its existence to Paytm, stating: "Paytm is the father of all fintechs in India. If it didn't exist, BharatPe wouldn't have existed." "They (Paytm) introduced and built the behaviours of scanning a QR code to help money flow in India.