In a recent statement, Reserve Bank of India (RBI) Governor Shaktikanta Das emphasized the central bank’s unwavering stance regarding its decision against Paytm Payments Bank Ltd (PPBL). Addressing concerns surrounding the directive issued on January 31, which instructed PPBL to cease accepting deposits or top-ups in any customer accounts, wallets, FASTTags, and other instruments after February 29, Das underscored that there is “hardly any room for review.”
The RBI’s action against PPBL, coupled with the termination of the ‘nodal accounts’ of One97 Communications Ltd, the parent company of the Paytm brand, stems from ‘persistent non-compliance’ and ongoing supervisory concerns, as outlined by the central bank. Das reiterated that such decisions are made following a comprehensive assessment and are not taken lightly.
Speaking on February 8, Das emphasized that the RBI’s decisions are meticulously considered and ruled out any potential relaxations regarding the PPBL directive. ‘At the moment, let me say very clearly, there is no review of this (PPBL) decision,’ he stated unequivocally. ‘If you are expecting a review of the decision, let me very clearly say there is (going to be) no review of the decision.’
Highlighting the rationale behind the action taken against PPBL, Das reiterated that directives against regulated entities are enforced when they fail to comply with regulations despite prior warnings. ‘We have taken action against PPBL after due consideration,’ he affirmed, reassuring stakeholders that FAQs (Frequently Asked Questions) would be issued soon for the benefit of PPBL’s customers.
In a notable move, the RBI has permitted the crediting of interest, cashbacks, or refunds even beyond the initial deadline of February 29, offering some respite to affected users.
Moreover, Governor Das underscored the RBI’s supportive stance towards the fintech sector, emphasizing the central bank’s commitment to facilitating its rapid growth. Despite the regulatory action against PPBL, the RBI remains steadfast in fostering a conducive environment for innovation and development within the fintech space.
