Indian The Reserve Bank on Thursday said that regulatory action has been taken against Paytm Payment Bank Limited (PPBL) and the Paytm app will not be affected by it. “One clarification has to be made, this particular action is against Paytm Payments Bank and do not link it with the Paytm app,” RBI Deputy Governor Swaminathan J told reporters after the Monetary Policy Committee (MPC) meeting. The app will not be impacted by this action.” Asked if other banks can partner with Paytm Wallet, he said it is a business decision and banks have to complete the necessary process as per their board approved policy. Will have to do.
No effect on Paytm app
He said, “I have full confidence that if they have to partner, they will complete the necessary process.” Reserve Bank of India Governor Shaktikanta Das said on Thursday that there is no need for concern at the system level in the Paytm case. And the action against the payment bank is due to non-compliance with the rules. Das said that RBI is a responsible regulator. He asked in a questioning tone that if the financial institutions under the purview of RBI fulfill all the requirements, then what is the need for the central bank to take action against any entity.
RBI gives enough time to institutions
He said, “RBI works with institutions on a bilateral basis. Encourages them to comply with the rules by giving them adequate time. Action at the surveillance level is taken only when necessary steps are not taken by the concerned entity. “When the regulated entity (banks and NBFCs) does not take effective action, we can take steps to impose restrictions on functioning,” Das said. He said that the action has been taken keeping in mind the stability at the system level or the protection of the interests of depositors or customers.
RBI will issue FAQ
Governor Das reiterated the central bank’s commitment to promoting innovation in the financial sector. He said there should be ‘no doubt’ about it. He said that RBI has received a wide response from the people. The central bank will issue FAQs (Frequently Asked Questions) next week to address concerns. RBI Deputy Governor Swaminathan J said the action against financial technology (fintech) has been taken due to persistent non-compliance with rules.
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