Reserve Bank of India (RBI) governor Shaktikanta Das reaffirmed the central bank’s position on the action taken against Paytm Payments Bank, asserting that there would be no review of the decision. Das emphasized that the RBI’s move was based on a thorough evaluation of the bank’s operations, underscoring the institution’s commitment to maintaining financial stability and safeguarding customer interests.
Addressing reporters at a press conference following the meeting of the Central Board of Directors of the Reserve Bank of India, Das reiterated the RBI’s support for the fintech sector while emphasizing the imperative of ensuring customer protection. The meeting, which saw the participation of Union Finance Minister Nirmala Sitharaman, provided a platform to discuss key issues affecting the banking and financial landscape.
The RBI governor’s remarks come in the wake of the central bank’s directive issued on January 31, which prohibited Paytm Payments Bank from accepting deposits effective February 29. The directive outlined strict limitations, barring the bank from conducting further deposit or credit transactions, top-ups, or other financial activities beyond the specified date, except for interest, cashbacks, or refunds.
During a briefing held subsequent to the monetary policy committee announcement, the RBI cited “persistent non-compliance” as the primary reason for taking action against the Paytm subsidiary. The central bank’s move underscores its commitment to upholding regulatory standards and ensuring adherence to compliance norms within the banking sector.
The RBI’s unwavering stance on Paytm Payments Bank reflects its proactive approach in addressing regulatory concerns and maintaining the integrity of the financial system. As the central bank continues to monitor developments in the fintech space, it remains steadfast in its efforts to foster a robust and resilient banking ecosystem that prioritizes consumer protection and financial stability.