Amid the growing crisis for FinTech giant – Paytm – after the ban by the Reserve Bank of India (RBI) on its payments bank business, the Governor of the Central Bank said there was “hardly any room” to review the action taken against Paytm Payments Bank.
While talking to the reporters, Governor Shaktikanta Das also said that RBI takes action against regulated entities only after a comprehensive assessment.
He emphasised that the RBI is supportive of the fintech sector, and said it is also committed to protect the interest of customers as well as ensure financial stability.
The central bank is expected to soon issue a set of FAQs (Frequently Asked Questions) on the Paytm matter.
In a major action against the PPBL, RBI, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTTags and other instruments after February 29.
The remarks came post media interaction of the 606th meeting of the Central Board of Directors of the Reserve Bank of India at New Delhi under the Chairmanship of Governor Shaktikanta Das.
Union Finance Minister Nirmala Sitharaman addressed and interacted with the Directors of the Central Board, and highlighted the key thrust areas outlined in the interim Union Budget 2024-25 and the expectations from the financial sector.
The Directors complimented the Finance Minister on the Budget and shared their views.
The Board also reviewed the global and domestic economic situation and outlook, including the challenges posed by geopolitical developments and global financial market volatility.
At the meeting, the Finance Minister was accompanied by Pankaj Chaudhary, Minister of State for Finance; Dr. Bhagwat Kishanrao Karad, Minister of State for Finance; Dr. TV Somanathan, Finance Secretary and Secretary, Department of Expenditure; Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management; and Dr. V. Anantha Nageswaran, Chief Economic Advisor.
In a separate development, the Managing Director and Chief Executive Officer of the private sector lender, Axis Bank, Amitabh Chaudhry, said the bank is open to working with Paytm if the RBI permits it.
“Subject to regulatory approval and if the regulator allows us to work with Paytm, of course we will work with them, they are an important player,” said Chaudhry at the launch of the Axis Bank’s `2023 Burgundy Private Hurun India 500′.
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