Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday addressed concerns regarding the recent actions taken against Paytm, emphasising that the measures were prompted by a "lack of compliance" within the fintech firm.
Deputy Governor Swaminathan J echoed this sentiment, attributing the regulatory actions to "persisted non-compliance" on Paytm's part. Swaminathan J also said that Paytm app not will not impacted by RBI actions. "Just to clarify, the action is against Paytm Payments Bank, not against the Paytm app. The app is not impacted by our action."
In a post-MPC press conference, Governor Das, while refrained from detailing the specific compliance failures leading to the RBI's intervention, underscored the central bank's role as a "responsible regulator." He questioned the necessity of regulatory action against a compliant entity and stressed the importance of adherence to regulatory requirements.
Das explained that the RBI engages with regulated entities on a bilateral basis, providing ample opportunity for compliance before resorting to restrictive measures or supervisory actions. He said that such actions are proportionate to the severity of the compliance breaches and are aimed at preserving systemic stability and safeguarding the interests of depositors and customers.
Furthermore, the governor affirmed the RBI's commitment to fostering innovation within the financial sector, dispelling any doubts surrounding its support for technological advancement.
Acknowledging public feedback on the matter, Das announced plans for the RBI to release a set of Frequently Asked Questions (FAQs) aimed at addressing concerns and providing clarity on the issue.
The RBI's stance underscores the importance of regulatory compliance in maintaining the integrity and stability of the financial system while encouraging innovation in the fintech sector.
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