Paytm Payments Bank crisis news: Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday told reporters at the post-monetary policy committee (MPC) press conference that the central bank will be rolling out a separate list of frequently asked questions (FAQs) on fintechs to allay any customer doubts some time in the next week.
While addressing the Paytm issue, the governor also said that the bank takes supervisory action when constructive engagement does not work or wherein corrective action is not taken.
"When such constructive engagement doesn’t work or the regulated entity doesn’t take effective action we go for imposing supervisory or business restrictions," Das told reporters.
He also said that the RBI is a responsible regulator. "Why should we act if an entity is compliant with regulation? We are a responsible regulator," Das said. He, however, said that the remarks are general in nature and not related to Paytm.
Meanwhile, RBI Deputy Governor Swaminathan J said that the central bank's action is a supervisory one on an entity regulated by it for persistent non-compliance.
He added that such actions are taken after months or years of bilateral engagement, while stating that the RBI provided time to the regulated entities to take the required action.
While allaying fears of crores of worried Paytm users, Swaminathan J further said that customers can still access the services of the digital payment services app. He added that the bank keeps customers at the centre of any action it takes.
RBI notice to Paytm
The central bank, on January 31, ordered Paytm's banking unit Paytm Payments Bank Ltd (PPBL) to stop its mobile wallet business along with other activities.
The RBI cited persistent non-compliance on PPBL's part and supervisory concerns. PPBL, which processes transactions for Paytm, must stop its banking activities after February 29, the central bank said in its notice.
In its January 31 notice, the RBI directed the payments bank to settle all pipeline transaction and nodal accounts by March 15 as no further transaction shall be permitted thereafter.
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