PayTM, not a victim
Controversial take below: No doubt that PayTM has been a poster-boy of Indian fintech startups. And Vijay Shekhar Sharma has been an exceptional entrepreneur: building PayTM into a homegrown brand and a multi-billion dollar public company. To that extent, PayTM does deserve a lot of respect from the entire startup community and all of us.
But in current context, they were found to be persistently non-compliant on certain regulations: regulations which are not new and which exist for the protection of consumer interest and overall trust in the ecosystem. That PayTM failed to adhere to them, is squarely on them. That is just oversight or just negligence on their part, and they are facing the consequences of their (in)action.
Why then this show of support for PayTM, who clearly is at fault here? Is it just sympathy for VSS and other PayTM employees who see a lot of their wealth dissipate overnight? Is it just teenage rebellion spirit against the "system" and believing startups are above them? Or is it just accepting that it is okay to cut corners, almost with the guilt of knowing we have erred similarly too?
I get the respect for the company and VSS, I do. But to present them as heroes who have been hard done by regulators, is a grossly misleading narrative.
Don't think your take is controversial at all. Rather, it's quite logical considering conmonly available information. My POV as under.
Regulator must have surely taken the right step for customer protection. True.
Both Paytm and VSS are getting love from all corners because of the impact they may have made. True.
Other start-ups are crying foul, because next could be them. Maybe true.
Slight difference is that Paytm Payments bank and Paytm are two separate entities.
Bank's errors from years ago(due to which it has an embargo) has an inadvertent cascading effect on the Core Payments business of Paytm (listed mothership called One97 Communications)
Regulator took an action on a small regulated entity, leading to displacement of a large entity used by 100 million Indians monthly.
That's hard done, unfortunately.
Anyway, there are readily available solutions for Paytm to de-link from PPBL and partner with other large banks, and I'm certain that a solution will be arrived at before month end. Cheers!
I am happy that Indian regulators don’t use this reasoning to protect private companies.
Your third statement answers your question
I think the third point - today it is Paytm, tomorrow it might be us
Meanwhile opportunists purchase bucket loads of Paytm stocks expecting to sell off once things cool down