The Reserve Bank of India is not against any fintechs, RBI Governor Shaktikanta Das told ET Now in an interview on March 6. The RBI only wants fintechs to grow, Das averred.
The banking regulator’s recent actions are not directed against any fintech but against a regulated entity, the Governor underlined in a reference to the Paytm case that has caused major ripples in India’s fintech industry.
A few weeks ago, the central bank had imposed a series of penalties on Paytm bank citing “citing persistent non-compliance and continued material supervisory concerns.”
Das said he believed that time given to Paytm up to March 15 was sufficient. It may be noted here that Paytm Payments Bank has been given a March 15 deadline to wind down operations.
Also read: GDP growth may touch 8%: RBI Governor Das
Originally, the central bank had barred Paytm bank from taking in fresh deposits/top-ups from February 29. The deadline was later extended to March 15.
Industry expects the regulator to appoint an administrator for handling some critical aspects at Paytm bank.
Customers exclusively dependent on Paytm Payments Bank (15-20%) are shifting to other banks, Das said.
The RBI has deepened supervision to prevent financial mishaps but it does not want to slow down growth of India’s financial sector, he added.
Das further said that the apex bank was focused on ensuring sustainable growth for the sector. “Our responsibility is to ensure that financial sector grows with a good speed but in a sustainable manner,” he said.
