When CNBC-TV18 asked if the central bank would consider extending the February 29 deadline when Paytm Payments Bank will not be able to accept deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, RBI deputy governor Swaminathan J said, the action on the fintech is a supervisory one on a regulated entity over persistent non-compliance.
Swaminathan J clarified that such actions are preceded by months or years of bilateral engagement and that regulated entities (in this case Paytm Payments Bank) are provided adequate time to take corrective action so as to protect consumers and financial stability of the system.
He also assured that suitable steps will be taken by the regulator to ensure customers’ interests are protected.
Following this, the RBI Governor Shaktikanta Das also stressed that there is no worry about the financial system at the moment. However, individual entities should be mindful because of the long term impact.
Even as RBI officials refrained from commenting on any individual entity, the RBI governor made seven general observations on all regulated entities, which include Paytm and all others. He added that in the case of Paytm Payments Bank, it’s a compliance issue — not one, but multiple.
Here are the seven key observations made by RBI governor Das
-Emphasis is always on bilateral engagement with the regulated entity
-The focus is on nudging them for corrective action
-Even if such constructive engagement does not work, or when the regulated entity doesn’t take corrective measures, the regulator needs to step in. Such restrictions are proportionate to gravity of situation
-Being a responsible regulator, all actions are in accordance with the system and in the best interest of customers.
-Individual entities should be mindful for their long term prospects
-We will issue an FAQ sometime next week to answer these queries
-RBI is and will continue to support and encourage innovation and technology in the final system.
First Published: Feb 8, 2024 12:46 PM IST
