A Case Study on Paytm: Managing the Meteoric Fall after Cross-Roads with RBI

DOI

10.2991/978-94-6239-660-9_6How to use a DOI?

Keywords

PayTM Payments Bank; RBI Regulations & Legal Compliances; Leadership; Business ethics

Abstract

India’s fintech industry is at the turning point as a result of the regulatory framework changing to accommodate these new technology and market developments, such as the quick expansion of fintech businesses. Changing regulatory frameworks could have an impact on the fintech sector which may also establish standards for upcoming industry titans. As a result of these RBI regulatory frameworks, one of the leading fintech payment banks, “Paytm,” shut down all of banking activities from March 2024 because of non-compliance with banking rules, non-KYC, potential money laundering, and loose ends (RBI Press releases 2022). Paytm Payments Bank founded by Mr. Vijay Shekhar Sharma (VSS) revolutionized the digital payment system in the Indian economy. The collapse of Paytm banking operations presented a dilemma for VSS that is whether to challenge the RBI’s decision or comply with the demands, both of which carry significant consequences for the company’s future. Additionally, he was dealing with a number of internal and external problems that were interfering with PayTM’s ability to run its operations smoothly, as several senior management personnel and loyal customers were departing the business. Therefore, finding solutions to this dilemma requires careful consideration of various stakeholders’ interests and perspectives, including those of PayTM, competitors, regulators, and consumers. The situation’s overall impact has crippled PayTM operations making it necessary to examine VSS’s leadership choices in order to preserve PayTM’s survival.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Kiran Kumari
AU  - Rishi Dev
AU  - Monika Agarwal
AU  - Sidharth Shekhar Dash
PY  - 2026
DA  - 2026/04/29
TI  - A Case Study on Paytm: Managing the Meteoric Fall after Cross-Roads with RBI
BT  - Proceedings of the International Conference on Management Research (ICMR 2025)
PB  - Atlantis Press
SP  - 95
EP  - 110
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-660-9_6
DO  - 10.2991/978-94-6239-660-9_6
ID  - Kumari2026
ER  -