Will RBI review its action against Paytm Payments Bank? Shaktikanta Das says…

Reserve Bank of India governor Shaktikanta Das on Monday made it clear that the central bank will not review its action against Paytm Payments Bank, while adding that the action was taken after a comprehensive assessment of the functioning of the lender.

“At the moment let me say very clearly there is no review of this (PPBL) decision. If your are expecting a review of the decision, let me very clearly say there is (going to be) no review of the decision,” PTI quoted the governor as saying at a press conference after the meeting of the Central Board of Directors of the Reserve Bank of India.

Reserve Bank of India (RBI) Governor Shaktikanta Das(PTI)
Reserve Bank of India (RBI) Governor Shaktikanta Das(PTI)

‘Committed to protect the interest of customers’: RBI governor

The meeting was addressed by Union finance minister Nirmala Sitharaman. The RBI governor said that the bank is supportive of the fintech sector and added that it is also committed to ‘ protect the interest of customers as well as ensure financial stability’.

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On January 31, the RBI had stopped Paytm Payments Bank from accepting all deposits from February 29.

“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the central bank order had said.

During the briefing held after the monetary policy committee announcement, the RBI had said that the action against the Paytm subsidiary was taken due to the lender’s ‘persistent non-compliance’.

“We give sufficient time to every entity to comply and sometimes more than sufficient time to the entities for compliance. If they would comply, why would a regulator like us would have to take action?” Das had said days after Paytm founder and CEO Vijay Shekhar Sharma had met the RBI and finance minister Sitharaman.

According to reports, the RBI had refused to grant concessions to Paytm which included the extension of February 29 deadline.

On the other hand, Sitharaman made it clear to Vijay Shekhar Sharma that the action by RBI was a regulatory one and the government cannot help the company with.

(With PTI inputs)

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