RBI To Release FAQs Addressing Paytm Payments Bank Concerns This Week

The RBI, on January 31, directed Paytm Payments Bank to halt the acceptance of deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29

The Reserve Bank of India (RBI) is set to issue a comprehensive set of Frequently Asked Questions (FAQs) this week in response to the various concerns raised by customers of the troubled Paytm Payments Bank Ltd (PPBL). RBI Governor Shaktikanta Das highlighted the importance of addressing customer issues promptly, stating, "Customer interest and depositors' interest is uppermost for us." His statement came following the customary address by the finance Minister to the central bank's board.

In a significant move against PPBL, the RBI, on January 31, directed the bank to halt the acceptance of deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29.

When asked about the possibility of extending the February 29 deadline, Governor Das responded, "Wait for the FAQ." He clarified that the FAQs wouldn't entail a review of the RBI's decision but would focus on addressing issues concerning depositors, customers, wallet users, and FASTag holders in the best interest of customers.

Earlier in the day, Finance Minister Nirmala Sitharaman addressed the RBI's central board of directors, highlighting the key areas outlined in the interim Union Budget 2024-25 and expectations from the financial sector. During the meeting, the Finance Minister received compliments on the Budget from the directors, who also shared their views.

Accompanying the Finance Minister were Ministers of State for Finance, Pankaj Chaudhary and Bhagwat Kishanrao Karad, along with other senior officials of the ministry, including Finance Secretary T V Somanathan and Financial Services Secretary Vivek Joshi.

The board's discussions also encompassed the review of the global and domestic economic situation and outlook, including challenges posed by geopolitical developments and global financial market volatility.

Deputy Governors Michael Debabrata Patra, M Rajeshwar Rao, T Rabi Sankar, Swaminathan J, and other Directors of the Central Board attended the meeting, including Satish K Marathe, S Gurumurthy, Revathy Iyer, Sachin Chaturvedi, Venu Srinivasan, Pankaj Ramanbhai Patel, and Ravindra H Dholakia.