According to the Financial Services Secretary, the RBI's move against Paytm Payments Bank is beneficial to both the economy and customers

According to the Financial Services Secretary, the RBI's move against Paytm Payments Bank is beneficial to both the economy and customer

A day after Paytm founder Vijay Shekhar Sharma visited Finance Minister Nirmala Sitharaman, Joshi made his remarks.

Joshi claims that despite the RBI's action against Paytm Payments Bank, it is a "very small bank" and that there are no issues with systemic stability.

According to Financial Services Secretary Vivek Joshi, customers and the Indian economy as a whole stand to benefit from the recent action employed by the Reserve Bank of India (RBI) against Paytm Payments Bank.

Joshi said that the matter needed to be settled at the level of the Indian central bank and the corporation in an interview with Moneycontrol on February 7.

"About Paytm, what can I say? The regulator has taken this action. They oversee the banks," said Joshi.

"As far as the actions taken against Paytm are concerned, there is little the government can do. Furthermore, we think that the RBI would have acted to benefit the economy and consumers as a whole," he said.

A day after Paytm founder Vijay Shekhar Sharma visited Finance Minister Nirmala Sitharaman, Joshi made his remarks. Joshi, who attended the meeting, declined to provide specifics.

"Yesterday, I attended the meeting with the Minister of Finance. However, because the information was conveyed in confidence, I am unable to disclose it. The main point is that Paytm would have to interact with the regulatory body."

Joshi said that there is no systemic risk since Paytm Payments Bank is a very tiny bank when asked whether the RBI's decision has raised any worries about financial stability.

According to an RBI report from January 31, Paytm is under significant pressure after a directive from the payments bank to cease taking new deposits and credit transactions after February 29. Additionally, Paytm Payments Bank is no longer permitted to take top-ups to any kind of client account, including prepaid cards. NCMC Card, Fastag, and wallet.

After receiving a thorough system audit and compliance verification report from external auditors, the RBI announced that it is taking action against Paytm Payments Bank because "further supervisory action is warranted due to determined non-compliance alongside persistent material supervisory concerns at the bank."

Revenue Department Sanjay Malhotra told Moneycontrol on February 3 that law enforcement authorities would look at Paytm if necessary, but that no such action is being taken at this time. This was in response to rumors about a potential Enforcement Directorate inquiry.

Paytm has refuted any allegations of money laundering against it, its partners, or the founder of the business.