Vakrangee, Fino Payments Bank, and Paytm operate in India’s financial services space with distinct models. Paytm dominates in scale but remains loss-making, Fino Payments Bank is profitable but faces growth constraints, and Vakrangee focuses on rural financial services but struggles with digital transformation. Investors must weigh profitability vs. growth potential.
In January 2024, Paytm, a major player in India’s digital payments market, faced a significant regulatory challenge from the Reserve Bank of India (RBI). The central bank imposed strict curbs on Paytm’s Payments Bank, barring it from accepting fresh deposits and conducting credit transactions. This directive followed an audit that revealed consistent non-compliances and supervisory concerns. The RBI’s action, effective from February 29, 2024, is predicted to severely disrupt Paytm’s offline merchant and gateway businesses, essentially ceasing most operations of Paytm Payments Bank. This necessitates the termination of Paytm’s nodal accounts, likely resulting in the relocation of several business functions to alternative banks.
Paytm Navigates Regulatory Storm with Robust Profitability Amid Banking Constraints
In 2010 we started Paytm. Between 2011 and 2020, we have been a payment company and a bank. This decade will see us as a large financial services company from being an internet company.
– Vijay Shekhar Sharma
