Reserve Bank of India governor Shaktikanta Das has said that there is “hardly any room for review” of the central bank’s decision against Paytm Payments Bank. On January 31, RBI directed Paytm Payments Bank Ltd (PPBL) to stop accepting deposits or top-ups in any customer accounts, wallets, FASTTags and other instruments after February 29. While announcing the action against PPBL, RBI had said the direction follows persistent non-compliances and continued material supervisory concerns.RBI has also directed termination of the ‘nodal accounts’ of One97 Communications Ltd, which owns the Paytm brand.
What exactly RBI governor say
Das said that the RBI takes action against regulated entities “only after a comprehensive assessment.” Das had said on February 8 that the action was taken due to “persistent non-compliance” by the Vijay Shekhar Sharma-led company. He said that RBI’s decisions are well thought out. Ruling out any relaxations, Das said, “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”.
With regard to action taken against PPBL, he said directives against any regulated entities are taken whenever it finds that they don’t take any action even after they are told to comply with the regulations.
“We have taken action against PPBL after due consideration and soon FAQs (Frequently Asked Questions) will be issued for the benefit of its customers,” Das said after the 606th meeting of the Central Board of Directors of RBI.
What RBI has allowed
The central bank has allowed credit of interest, cashbacks, or refunds even beyond February 29.
RBI supportive of the fintech sector
Das said that RBI is always supportive of the fintech sector, and that it is the endeavour of the central bank to ensure its rapid growth.