No review of action taken against Paytm Payments Bank, says RBI Governor

AMN

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday made it clear that there was “hardly any room” to review the action taken against Paytm Payments Bank. Governor Das said the central bank’s decision came after a comprehensive assessment and was taken in the interest of the consumers.

Shaktikanta Das said that the central bank will not review the actions it has taken against Paytm Payments Bank.

“Let me be very clear that there is no review of the action taken against Paytm Payments Bank. The FAQ will deal with customer interest issues,” the RBI chief said in New Delhi on February 12.

Das was speaking to the media after the meeting of the RBI’s central board of directors in the Capital, that was addressed by Finance Minister Nirmala Sitharaman.

“When a decision is taken, it is taken after much consideration and deliberation. Decisions are not taken in a casual manner. They are taken in a serious manner,” Das further added.

Last month, the RBI issued a directive to Paytm affiliate Paytm Payments Bank, mandating the cessation of a significant portion of its operations by February 29. This includes discontinuing services related to deposits, credit offerings, and its widely used digital wallets, citing ongoing issues of non-compliance.

The RBI may soon release frequently asked questions (FAQs) on all aspects of the decision on Paytm Payments Bank, which will clarify any confusion in the minds of consumers about the central bank’s action against the fintech startup.

Following numerous queries on the repurcussions of the RBI’s actions, Das said on February 8 at the post-monetary policy press briefing that the central bank will release a set of FAQs this week.

“Please wait for that. But, whatever action we take in general, it is only after months and sometimes even years of talks before that,” the governor said today on February 12.

Speaking more broadly on fintech, the governor said RBI has always been supportive of the sector and wants it to grow as much as possible.

“RBI promotes and will continue to promote fintech. But customer interest and financial stability is of prime importance,” he said.