'I wouldn't want to...': What Nirmala Sitharaman said on the crisis at Paytm

Finance minister Nirmala Sitharaman refrained from commenting on the crisis unfolding at Paytm Payments Bank but said her government was keen on fintech and "would like to engage with more shareholders in the space". 

In an interview to Network18, FM said fintech was an area which "all of us are very enthusiastic", veering away from a question on Paytm's lending arm. "I wouldn’t want to comment on a particular company."

The Reserve Bank of India  dealt a blow to Paytm by imposing severe restrictions on the company's banking associate after noting material discrepancies and non-compliance issues.

The central bank in reportedly considering scrapping the bank's licence as early as next month after depositors are safeguarded. The proposed move is in response to violations including misuse of customer documentation rules and non-disclosure of material transactions. 

Also read: RBI may cancel operating licence of Paytm Payments Bank next month, says report

No final decision has been reached and the RBI’s thinking could change based on Paytm’s representation, a Bloomberg report said. A Paytm Bank representative said the recent direction from the central bank is “part of the ongoing supervisory engagement and compliance process” and added that the bank has complied with the regulator’s instructions.