Losses in Paytm Payment Bank Shut Down - A Great Learning
The central bank has ordered the shutdown of Paytm Payments Bank due to concerns over non-compliance issues. Reports indicate that numerous accounts were opened without proper identification, raising worries about potential involvement in illicit activities such as money laundering.
Vijay Shekhar Sharma (born 7 June 1978) is an Indian technology entrepreneur and multimillionaire business magnate. He is the founder chairman, and managing director of One97 Communications founded in 1997 and its consumer brand Paytm which he started in 2010.
Early life and education
Vijay Shekhar Sharma was born in Aligarh, Uttar Pradesh on 7 June 1978, the third of the four children of Sulom Prakash Sharma, a school teacher, and Asha Sharma, a homemaker. He did his schooling from Harduaganj, a small town near Aligarh. He enrolled in college at the age of 15 and graduated with a B.Tech degree from the Delhi College of Engineering (now Delhi Technological University) at 19 years old [10][11][12]
Career
In 1997, while in college, he started the website indiasite.net, and sold it two years later for US$1 million.[13][14] Three years later, in 2000, he started One97 Communications which offered mobile content including news, cricket scores, ringtones, jokes and exam results.[14] One97 Communications Limited is the parent company of Paytm, a digital payments and financial services company that was launched by Sharma in 2010. In November 2021, Paytm went public raising $2.5 billion at a valuation of $19 billion, making it India's largest initial public offering at that time.
Sharma is also an angel investor who has supported tech startups.
Sharma joined the board of management at Netaji Subhas University of Technology in Delhi for three years.
In 2024, Sharma stepped down from his role as part-time non-executive chairman and board member of Paytm Payments Bank. This decision followed regulatory challenges encountered by the bank with the Reserve Bank of India.
Personal life
He is married to Mridula Parashar Sharma and they have a child.[38] He cites Alibaba's founder Jack Ma and Masayoshi Son of Softbank, as his inspirations. In February 2022, Sharma was arrested by Delhi police for hitting his car into the car of a police officer. He was later released on bail.
Other work
Sharma has been named as the UN Environment's 'Patron for Clean Air', where he helps to drive environmental action and awareness and advocate for the goals of United Nations Environment's global Breathe Life campaign.
Awards and recognition[edit]
- Won the Best Serial Entrepreneur Award at the Rural and Urban Development Summit and Awards 2022 presented by the Minister of State for the Ministry of Housing and Urban Affairs, Government of India.[23]
- Ranked the Youngest Indian Billionaire by Forbes magazine [24]
- In 2018, he was named the Entrepreneur of the Year by AIMAÂ [25]
- Time Magazine's 100 most influential people in 2017.[26]
- ET Entrepreneur of the Year, by The Economic Times in 2016 [27]
- Ranked by GQ in their listing of the 50 most influential young Indians of 2017.[28]
- In 2017, he became the Dataquest IT Man of the year.[29]
- Received an Honorary doctorate from Amity University, Gurgaon, in 2016[30]
- Honored with the Yash Bharati, the highest state civilian award of the Government of Uttar Pradesh in 2016.[31]
- Named as the Businessman of the Year at GQ Men of the Year Awards 2016.[32]
- He was conferred with the NDTV Indian of the Year in 2016.[33]
- Awarded the Impact Person of the Year Award in 2016.[34]
- Named India's Hottest Business Leader under 40 by The Economic Times in 2015.[35]
- In September 2015, he was named CEO of the Year by SABRE Award.[36]
Q. Who is Vijay Shekhar Sharma ?
A. He is a high growth making entrepreneur in India and Founder of Paytm
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Paytm Payments Bank will stop offering services like accepting deposits and processing credit transactions starting March 15, as directed by the Reserve Bank of India.
(https://www.rbi.org.in/commonperson/English/scripts/FAQs.aspx?Id=3573)
The RBI on January 31 directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, due to concerns around large-scale non-compliance of regulations and supervisory issues.
The Bombay Stock Exchange (BSE) has also issued guidelines for investors who use the bank exclusively for stock trading.
The central bank has ordered the shutdown of Paytm Payments Bank due to concerns over non-compliance issues. Reports indicate that numerous accounts were opened without proper identification, raising worries about potential involvement in illicit activities such as money laundering. This information has been shared with authorities including the Enforcement Directorate (ED) and the Prime Minister’s Office. In response, Revenue Secretary Sanjay Malhotra said that the ED will investigate Paytm Payments Bank, which is scheduled to temporarily cease operations by March 15. Additionally, the report highlighted instances of multiple accounts being linked to the same identification proof, along with transactions involving significant sums of money. Moreover, an unusually high number of dormant accounts were discovered, prompting further scrutiny.
What will change after Paytm Payments Bank shuts down?
-Customers will not be able to deposit money into their Paytm Payments Bank accounts, but will still be able to withdraw or transfer funds after March 15.
-Salary Credit, Direct Benefit Transfers, or Subsidies will not be available in Paytm Payments Bank accounts, but refunds, cashbacks, and sweep-ins from partner banks will still be allowed.
– Customers will not be able to access the top-up facility and transfer money in their wallets after March 15. However, they can make payments if there is a balance available in their accounts.
-Recharge or top-up of funds in NCMC cards issued by Paytm bank will no longer be possible.
-Customers will not be able to transfer money into Paytm Payments Bank accounts through UPI or IMPS after March 15.
Q. When Paytm Payment Bank get shut down?
A. 15-Mar-2024 as per RBI notice Paytm Payment Bank get shut down properly.
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