Governor of the Reserve Bank of India Shaktikanta Das said on Monday that there isn't much room to change the actions taken against Paytm Payments Bank. According to the RBI governor, there is "hardly any room" to reconsider the decision.
On January 31, the RBI gave PPBL instructions to stop taking money into or topping off any client accounts, wallets, FASTTags, or other devices after February 29.
The Paytm controversy
In a news conference in New Delhi, Shaktikanta Das restated that the central bank only takes action against regulated firms following a comprehensive investigation.
He went on to say that although the RBI is in favor of the fintech industry, it is also dedicated to protecting consumer interests and maintaining financial stability.
The RBI is anticipated to release a series of Frequently Asked Questions (FAQs) this week in response to the ongoing Paytm issue
RBI governor on Paytm issue
Governor of the Reserve Bank of India Shaktikanta Das said last week that the RBI always prioritizes bilateral engagement with regulated businesses and encourages them to take corrective measures. Das claims that there is always enough time provided to make amends. He stated that over the past several years, RBI has greatly expanded its supervisory approach and procedures, without mentioning Paytm by name.
"We give sufficient time to every regulated entity to comply with regulatory requirements. Sometimes it is more than sufficient time. We are a responsible regulator. If everything is complied with, why should we act?" stated Shaktikanta Das.
When asked about the ramifications for the banking system, Das clarified, "Let me clear the air on the Paytm problem. Concerning the system as a whole, there is none. It has to do with a certain organization."
Image Source: Reuters
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