RBI Governor says no review of action taken against Paytm Payments Bank. Soon to issue FAQ on Paytm

Shaktikanta Das says RBI is supportive of the fintech sector, but customer interest, and financial stability are of prime importance

Team PGurus

February 12, 2024

Shaktikanta Das says RBI is supportive of the fintech sector, but customer interest, and financial stability are of prime importance

Mounting challenges for Paytm: RBI maintains grip

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday categorically said there was “hardly any room” to review the action taken against Paytm Payments Bank. In a major action against Paytm Payments Bank (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.

Talking to reporters in the national capital on Monday, Das said there was “hardly any room” to review the action taken against Paytm Payments Bank. RBI takes action against regulated entities only after a comprehensive assessment, he said reiterating that there will be no review on actions taken against Paytm.

While emphasizing that RBI is supportive of the fintech sector, Das said it is also committed to protecting the interest of customers as well as ensuring financial stability. The RBI is expected to soon issue a set of FAQs (Frequently Asked Questions) on the Paytm matter.

Paytm, with major investment from Chinese companies, started in India eight years ago with much fanfare and earned millions of clients on digital payment was embroiled in controversies after the Central Bank caught them for lack of KYC (Known Your Customer) norms violations. Media reported that several accounts were linked to the same Aadhar number or same mobile phone number and the RBI auditors were directing Paytm to rectify their faults, which had not happened for the past two years.[1]

Reference:

[1] Central Depository Services India to inspect Paytm Money’s KYC process – Feb 08, 2024, Business Standard

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