Ashneer Grover, former co-founder and managing director of BharatPe, has slammed Reserve Bank of India (RBI) for its action against fintech major Paytm. In a post on X, formerly Twitter, Grover criticised the restrictions on Paytm, terming them ‘Doglapan’. He went on to say that such moves from RBI will kill the fintech industry in India. He tagged PMO, finance ministry and finance minister Nirmala Sitharaman in the post ureging them to step in and take redressive measures.

“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. 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’!
Why RBI has bars Paytm Payments Bank
Paytm Payments Bank has been barred by the RBI from accepting deposits/top-ups in any customer account, wallets, and FASTags after February 29 due to non-compliance of regulations and supervisory concerns.
“The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the RBI said in a statement.
“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,” it added.
The central bank further said “withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards are to be permitted without any restrictions, up to their available balance”.