Signatories to the letter embody Innov8 founder Ritesh Malik, Policybazaar’s Yashish Dahiya, MakeMyTrip’s Rajesh Magow and Bharat Matrimony’s Murugavel Janakiraman.
What the letter says
“We’re significantly involved concerning the potential ramifications of the present regulatory directive on Paytm Financial institution, extending far past the quick affect on the corporate itself. This motion, perceived as overly punitive, may ship a destructive sign to the worldwide enterprise group… a vibrant fintech ecosystem thrives on regulatory readability, predictability and a supportive surroundings. Whereas safeguarding monetary stability stays paramount, attaining this goal shouldn’t come at the price of stifling innovation and entrepreneurial spirit,” the founders mentioned of their illustration, urging additionally the Prime Minister to contemplate their plea.
The group additionally requested for a provision “granting Paytm Funds Financial institution a transparent and sensible window to deal with recognized deficiencies and exhibit compliance” and searched for “open dialogue and collaboration”.
On January 31, the Reserve Financial institution of India (RBI) advised Paytm Funds Financial institution to cease accepting new deposits in its accounts and its digital wallets from March, citing supervisory considerations and non-compliance with guidelines.