The problems of fintech Paytm, founded by Vijay Shekhar Sharma, are not going away. Taking tough action against Paytm Payments Bank, the Reserve Bank of India (RBI) has directed it to stop accepting fresh deposits and top-ups on customer accounts, wallets, FASTags, and other devices after February 29.

However, Vijay Shekhar Sharma is continuously saying on social media platforms that nothing like this will happen. They are also explaining to their employees that neither there will be any layoff nor any threat to the company.

Founded in August 2010, Paytm grew rapidly after demonetization in 2016. Vijay Shekhar Sharma kept moving forward but controversies never left him.

In 2017, Paytm had established itself as a successful fintech. In 2018, Paytm received an investment of $300 million from Berkshire Hathaway led by world-famous investor Warren Buffett, which further strengthened its position in the market. Paytm launched its IPO in November 2021, but this IPO paled in comparison to other startup unicorns.

Controversy also arose due to the investment in Paytm by Chinese sources, especially Alibaba Group. Concerns about its association with China increased when it was revealed that Alibaba Group company Antfin owned a stake in Paytm. To address these concerns and reshape the ownership structure, Vijay Shekhar Sharma executed a series of transactions in August 2023. This resulted in him gaining a stake in Antfin and reducing his ownership stake in Paytm.

Meanwhile, in November 2023, Warren Buffet also gave a blow to Paytm, Berkshire Hathaway sold its investment in Paytm at a loss.

Paytm has been further affected by the intervention of the Reserve Bank of India (RBI), with RBI imposing restrictions on Paytm Payments Bank and non-compliance with provisions that may result in huge fines. CAIT, an important organization of retail traders, has also decided to boycott Paytm. CAIT Secretary General, Praveen Khandelwal issued a statement and asked merchants to switch from Paytm to other fintech platforms or do UPI transactions directly.