Will the RBI reexamine what it did to the Paytm Payments Bank? Says Shaktikanta Das

Will the RBI reexamine what it did to the Paytm Payments Bank? Says Shaktikanta Das

RBI prohibited Paytm Payments Bank from taking any deposits starting on February 29 on January 31.

Governor of the Reserve Bank of India Shaktikanta Das said on Monday that the bank would not be reviewing its action against Paytm Payments Bank and that the decision was reached after a thorough evaluation of the lender's operations.

"Let me state clearly that there will be no review of this (PPBL) decision at this time," PTI said. In a news conference held after the Reserve Bank of India's Central Board of Directors satisfying the governor said, "If you are expecting a review of the conclusion, then let me absolutely say that there will be no review of the decision."

Dedicated to safeguarding the interests of clients: Governor of RBI

Union Finance Minister Nirmala Sitharaman spoke to the group. In addition to stating that the bank is dedicated to "protecting the interests of customers and especially ensuring financial stability," the governor of the RBI emphasized that the bank supports the fintech industry.

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RBI prohibited Paytm Payments Bank from taking any deposits starting on February 29 on January 31.

The central bank directive said that after February 29, 2024, "no deposit, credit transaction, or top-up will be recognized in any customer account, prepaid device, wallet, FASTags, NCMC card, etc., beyond any interest, cashback, or refund, which will be allowed on a single Time can be accumulated."

Following the statement, the RBI informed the Monetary Policy Committee that the move against the Paytm subsidiary was the result of the lender's "persistent non-compliance."

We provide sufficient time for all entities to comply, often even beyond that amount of time. Why would a regulator like us need to step in if they are willing to comply?" Das made this statement a few days after RBI and Finance Minister Sitharaman were visited by Paytm CEO and founder Vijay Shekhar Sharma.

Reportedly, the RBI declined to provide Paytm any leniency, including extending the deadline till February 29.

However, Sitharaman clarified to Vijay Shekhar Sharma that the RBI move was a regulatory measure and that the government was unable to assist the firm in this regard.