Paytm Payments Bank has almost closed its doors after February 29. The RBI Governor has given indications about this. Let us tell you that Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that there is ‘hardly any scope’ for reviewing the action taken against Paytm Payments Bank (PPBL). In a major action against Paytm Payments Bank, RBI had barred it from accepting deposits or top-up in any customer account, wallet, Fastag and other instruments after February 29. This makes it clear that after February 29, the license of Paytm Payments Bank will be cancelled. RBI has no plans to renew it.
RBI will issue FAQ on Paytm
Speaking to reporters in the national capital on Monday, Das said there was ‘hardly any scope’ for a review of the action taken against Paytm Payments Bank. He also said that RBI takes action against regulated entities only after comprehensive assessment. Das emphasized that the regulator supports the financial technology (fintech) sector, and is committed to ensuring financial stability while also protecting the interests of customers. It is expected that the central bank will soon issue FAQs (Frequently Asked Questions) on the Paytm issue.
Government is investigating FDI flow
The government is investigating foreign direct investment from China in Paytm Payments Services Limited (PPSL), a subsidiary of One97 Communications Limited. PPSL had applied for a license with the Reserve Bank of India (RBI) to operate as a payment aggregator in November 2020. RBI, however, rejected PPSL’s application in November 2022 and asked the company to resubmit it, so as to comply with Press Note 3 under FDI rules. Chinese firm Ant Group Company has an investment in One97 Communications Limited (OCL). Subsequently, the Company sought to comply with Press Note Three prescribed under the FDI Guidelines from OCL for previous investments in the Company in India.
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