Why Paytm competitors are hesitant to hire people from fintech firm

Paytm has been in the news since RBI's crackdown on its Paytm Payments Bank last month. Its share price tanked over 15 per cent in two days to settle at Rs 419.85 on the BSE. The troubled fintech company is known for paying salaries above the industry average. Now, its rivals and other startups may be seeking talent from Paytm. 

According to industry insiders and executives at recruitment services and search firms, Paytm employees receive 20-30% higher salaries than the industry standards. This fact has made many startups hesitant to hire Paytm employees, according to an ET report. However, as Paytm is currently facing regulatory pressures on its operations, many employees at Paytm are reportedly open to switching jobs, even on lower pay.  

On January 31, the RBI ordered Paytm Payments Bank Ltd, to not take any further deposits or conduct credit transactions or carry out top-ups on any customer's accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29. Paytm Payments Bank Ltd (PPBL) is an associate of One97 Communications Ltd, which the Paytm brand. 

RBI Governor Shaktikanta Das on Thursday said there are no systemic worries and the action on Paytm was driven by a 'lack of compliance' on the company's part. One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Founder Vijay Shekhar Sharma has a 51 per cent stake in the bank.

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