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

Kiran Kumari (), Rishi Dev (), Monika Agarwal () and Sidharth Shekhar Dash ()
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Kiran Kumari: Mody University of Science and Technology, School of Law
Rishi Dev: Kalinga Institute of Industrial Technology, School of Law
Monika Agarwal: Jagan Institute of Management Studies
Sidharth Shekhar Dash: Kalinga Institute of Industrial Technology, School of Law

A chapter in Proceedings of the 5th International Conference on Management Research (ICMR 2025), 2026, pp 95-110 from Springer

Abstract: 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.

Keywords: PayTM Payments Bank; RBI Regulations & Legal Compliances; Leadership; Business ethics (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-660-9_6

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