On the Paytm crisis, a set of startup founders have written a letter to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and the Reserve Bank of India urging them to re-evaluate the recent sanctions against Paytm & engage in positive discussion with the Fintech network.

As per the Moneycontrol report, the letter has been signed by at least a dozen startup founders of India, Founders including Murugavel Janakiraman of Bharat Matrimony, Deepak Shenoy of CapitalMind, Ritesh Malik of Innov8, Vishal Gondal of GOQii, Yashish Dahiya of PB Fintech and Rajesh Magow of MakeMyTrip.

According to report, the founders' letter stated, “The recent directives also impact millions of users of Paytm Payments Bank and such harshness needs to be revaluated to safeguard the best interests of customers and merchants,”

"Excessively stringent regulations targeting prominent fintech innovators like Paytm Payments Bank could create an impression of inconsistency and unpredictability, potentially deterring potential investors and innovators from entering the Indian market," the letter said.

Commenting about the issue, Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology said, "A sectoral regulator has an absolute authority to regulate every entity within the sector. The RBI has done so and this is within their purview to do so. Being a FinTech or being a tech company doesn't absolve anybody from regulatory oversight."