RBI Clarifies Position on Paytm: Regulatory Concerns Prompt Crackdown on Payments Bank
Paytm trouble not stopping RBI Clarifies Position on Paytm
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February [08/02], [2024] – Mumbai: The Reserve Bank of India (RBI) has broken its silence on the recent directive aimed at Paytm Payments Bank, shedding light on the regulatory concerns that prompted the crackdown on the popular digital payments platform.
In a statement released today, RBI Governor Shaktikanta Das reiterated the central bank’s commitment to ensuring compliance with regulatory standards across all financial entities. The directive issued on January 31st, which instructed Paytm Payments Bank to cease accepting new deposits in both accounts and digital wallets starting March, was underscored as a measure to address persistent compliance issues.
Governor Das emphasized that Paytm had been provided with ample time to rectify the identified compliance shortcomings. This assertion aims to dispel any notions of abrupt regulatory action, highlighting the RBI’s preference for engaging with regulated entities to facilitate corrective measures.
Deputy Governor Swaminathan Janakiraman further elaborated on the rationale behind the directive, citing Paytm’s persistent non-compliance with regulatory requirements. The RBI’s decision, therefore, reflects a proactive approach to ensure adherence to established norms within the financial ecosystem.