Governor of the Reserve Bank of India (RBI), Shaktikanta Das, made it clear on Wednesday that the central bank is in favor of the fintech industry's expansion and that the regulatory action was focused on a specific company rather than the industry as a whole.
Das stated that the move is specifically directed against the Paytm Payments Bank in an interview with the television network ET Now. "A regulated entity was the target of the RBI's action. It wasn't directed towards any particular business. I don't understand why it's being said that the RBI has taken action against a fintech company. The action in this instance (PPBL) is directed against Payments Bank. I'm not taking offense.
The RBI prohibited the Paytm Payments Bank from taking any more credit, top-up, or deposit transactions into its wallet or accounts starting on February 29 of this year in January. The Paytm Payments Bank services deadline was extended this month from February 29 to March 15. Customers can now make deposits, credit transactions, prepaid services, wallets, FASTags, and National Common Mobility Cards through March 15, 2024.
Das informed ET. Since the central bank has shown support for fintech companies, it has taken steps to advance the sector, including establishing a fintech department and other efforts. "In terms of fintechs, we haven't done anything yet. The RBI remains fully supportive of fintechs. Fintechs are the focus of RBI," Das stated.
According to him, RBI wants to make sure that the regulations are followed and that there are no significant mishaps in the fintech industry. "Our responsibility is to ensure that the financial sector grows with a good speed but in a sustainable manner," he stated.
