'We give sufficient time': Shaktikanta Das' 7-point message to fintechs post Paytm crisis

RBI governor Shaktikanta Das said entities such as Paytm are given sufficient time to comply with requirements, post which the regulator has to act. "Why should we act if an entity is compliant with regulation? We are a responsible regulator," Das said. 

There is no worry about the system, Shaktikanta Das said.  In his presser, Das allayed fears of fintech firms post the Paytm crisis. Here's what he said

-- RBI is and will continue to support innovation and technology in the financial sector. 
-- Let there not be any doubt about RBI’s commitment to promote fintechs, innovation, technology. 
-- We have been engaged with the entity (Paytm)for quite some time. 
-- Not appropriate to share granular details on Paytm issue.
-- Individual entities should be mindful of these aspects for long-term success. 
-- All actions of RBI are in best interest of systemic stability, protection of customers’ interest. 
-- Will be issuing FAQ some time next week on Paytm issue
 

The RBI has directed the payments bank to settle all pipeline transaction and nodal accounts by March 15 and said no further transaction shall be permitted thereafter. 

Stressing on customer first approach, the RBI said it will work on the feedback it has been getting. Deputy Governor Swaminathan further said that the regulator will ensure customer inconvenience, if any, is minimised. "We give sufficient time to every regulated entity to comply with requirements."

RBI said customers can still access Paytm services. Swaminathan said it was very difficult to "provide hypothetical answers at this time. We keep customer at the centre of what needs to be done. Each bank has to take their own business decisions with respect to partnership with Paytm," in response to a question on migration of services to other lenders.

The banking regulator felt that the cancellation of the permit is logical step at this point after repeated non-compliance of the regulations compelled the RBI to slap major business restrictions on the Payments Bank, effectively ending its operations by February 29.

The RBI had last Wednesday ordered Paytm Payments Bank, which is 49% owned by Paytm’s parent company, to stop its popular mobile wallet business along with other activities, citing persistent non-compliance and supervisory concerns.