RBI governor Shaktikanta Das reiterated that the bank has nothing against the Fintech sector per se. He said that the action against Paytm Payments Bank (PPBL) was due to consistent non-compliance. In an interaction with ET Now, the governor said that the RBI has taken action against a regulated entity, which in this case is PPBL and has nothing against Fintech companies. “RBI is and remains fully supportive of Fintech…RBI is all for Fintech to grow,” he said
Das further stressed that the RBI favours innovation in the financial technology sector and has even introduced Sandbox for testing new tools.
Giving a simple analogy, he said that one may own and drive a Ferrari but still one has to obey the traffic rules to avoid accidents.
RBI deadline for Paytm Payments Bank good enough
The deadline for linking the wallet attached with PPBL with other banks has been fixed for March 15, the governor said, ruling out any further extension. The governor said that the time given to Paytm Payments Bank (up to March 15) is sufficient and there is no need for further extension. He added that 80-85 per cent Paytm wallets are linked to other banks, and the remaining 15 per cent have been advised to move on to other banks.
Paytm payment app licence
Asked when the National Payments Corporation of India (NPCI) will take a decision on the Paytm payment app licence, Das said that it has to do its internal due diligence. “So far, as RBI is concerned, we have informed them that we have no objection if NPCI considers the Paytm payment app to continue because our action was against the Paytm Payment Bank. The app is with the NPCI…NPCI will take a call…I think they should be taking a call shortly,” he said.
Das further stressed that the RBI favours innovation in the financial technology sector and has even introduced Sandbox for testing new tools.
Giving a simple analogy, he said that one may own and drive a Ferrari but still one has to obey the traffic rules to avoid accidents.
RBI deadline for Paytm Payments Bank good enough
The deadline for linking the wallet attached with PPBL with other banks has been fixed for March 15, the governor said, ruling out any further extension. The governor said that the time given to Paytm Payments Bank (up to March 15) is sufficient and there is no need for further extension. He added that 80-85 per cent Paytm wallets are linked to other banks, and the remaining 15 per cent have been advised to move on to other banks.
Paytm payment app licence
Asked when the National Payments Corporation of India (NPCI) will take a decision on the Paytm payment app licence, Das said that it has to do its internal due diligence. “So far, as RBI is concerned, we have informed them that we have no objection if NPCI considers the Paytm payment app to continue because our action was against the Paytm Payment Bank. The app is with the NPCI…NPCI will take a call…I think they should be taking a call shortly,” he said.
