RBI’s big statement on Paytm Payments Bank! Reserve Bank of India Governor Shaktikanta Das stated on Monday that there is limited scope to reconsider the measures taken against Paytm Payments Bank. According to the RBI governor, there is hardly any room” to review the action.
The RBI had on January 31 directed PPBL to cease accepting deposits or top-ups in any customer accounts, wallets, FASTTags, and other instruments after February 29.
Shaktikanta Das, during a press interaction in New Delhi, reiterated that the central bank takes action against regulated entities only after conducting a thorough evaluation.
He further emphasized that while the RBI supports the fintech sector, it is equally committed to safeguarding the interests of customers and ensuring financial stability.
In response to the ongoing Paytm matter, the RBI is expected to release a set of Frequently Asked Questions (FAQs) some time this week.
Last week, RBI Governor Shaktikanta Das had stated that the central bank’s focus is always on engaging with regulated entities bilaterally and that the RBI nudges them to take corrective action. According to Das, sufficient time is always given to take corrective action. Without making any specific references to Paytm, he said that over the last few years, RBI has significantly deepened its supervisory approach and methods.
“We give sufficient time to every regulated entity to comply with regulatory requirements. Sometimes it is more than sufficient time. We are a responsible regulator. If everything is complied with, why should we act?” Shaktikanta Das said.
When asked about any implications for the financial system, Das clarified, “Let me put the record straight on the Paytm issue. There is no worry about the entire system. It is an issue with a specific institution.”
The RBI had on January 31 directed PPBL to cease accepting deposits or top-ups in any customer accounts, wallets, FASTTags, and other instruments after February 29.
Shaktikanta Das, during a press interaction in New Delhi, reiterated that the central bank takes action against regulated entities only after conducting a thorough evaluation.
He further emphasized that while the RBI supports the fintech sector, it is equally committed to safeguarding the interests of customers and ensuring financial stability.
In response to the ongoing Paytm matter, the RBI is expected to release a set of Frequently Asked Questions (FAQs) some time this week.
Last week, RBI Governor Shaktikanta Das had stated that the central bank’s focus is always on engaging with regulated entities bilaterally and that the RBI nudges them to take corrective action. According to Das, sufficient time is always given to take corrective action. Without making any specific references to Paytm, he said that over the last few years, RBI has significantly deepened its supervisory approach and methods.
“We give sufficient time to every regulated entity to comply with regulatory requirements. Sometimes it is more than sufficient time. We are a responsible regulator. If everything is complied with, why should we act?” Shaktikanta Das said.
When asked about any implications for the financial system, Das clarified, “Let me put the record straight on the Paytm issue. There is no worry about the entire system. It is an issue with a specific institution.”
