Reserve Bank of India (RBI) Governor Shaktikanta Das asserted on Monday, February 12, that there will be no review of the central bank's recent measures against Paytm Payments Bank (PPBL), saying the decision was taken after a comprehensive assessment of the functioning of the lender.
The decision, made on January 31, directed PPBL to cease accepting deposits or top-ups in any customer accounts, wallets, FASTTags, and other instruments after February 29.
Addressing the media after the 606th meeting of the Central Board of Directors of the Reserve Bank of India, Das categorically stated, "At the moment, let me say very clearly there is no review of this (PPBL) decision. If you are expecting a review of the decision, let me very clearly say there is (going to be) no review of the decision."
The RBI governor emphasised that decisions regarding entities regulated by the central bank are made after a thorough assessment. While expressing support for the fintech sector, Das reiterated the central bank's commitment to safeguard the interests of customers and ensure financial stability.
The RBI is anticipated to release a set of frequently asked questions (FAQs) regarding the Paytm Payments Bank matter later this week. The central bank had cited persistent non-compliances and ongoing material supervisory concerns as the basis for its action against PPBL.
Previously, on March 11, 2022, the RBI had prohibited PPBL from onboarding new customers. In the latest directive, the RBI instructed Paytm Payments Bank not to accept deposits, credit transactions, or top-ups in various customer accounts and instruments after February 29, 2024. However, interest credits, cashbacks, and refunds are permitted even beyond this date.
Customers of PPBL are allowed unrestricted withdrawal or utilisation of balances from their accounts, including savings and current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, up to their available balance.
Additionally, the RBI directed the termination of the 'nodal accounts' of One97 Communications Ltd, the parent company of the Paytm brand, which holds a 49% stake in Paytm Payments Bank Limited, classifying it as an associate rather than a subsidiary.
(Edited by : Shoma Bhattacharjee)
First Published: Feb 12, 2024 6:45 PM IST
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