RBI rules out any review of decision on Paytm Payments Bank

The Reserve Bank of India has ruled out a review of its recent regulatory action against Paytm Payments Bank. “The RBI takes all decisions after a lot of consideration and analysis. There is no review of the decision,” said RBI Governor Shaktikanta Das on Monday.

The RBI will soon issue a set of Frequently Asked Questions (FAQs) that will target the inconvenience and difficulties being faced by customers and depositors, wallet holders and FASTag holders of the bank.

“At the moment let me say very clearly there is no review of this [PPBL] decision. If you are expecting a review of the decision, let me very clearly say there is [going to be] no review of the decision… Such decisions are taken after much consideration and after a lot of thought. It is not taken in a casual manner,” Das told reporters.

WATCH: Why Is Market Expert AK Prabhakar Cautious Of Investing In The Paytm Stock?

The RBI had last month issued directions to Paytm affiliate Paytm Payments Bank directing it to stop onboarding new customers with immediate effect. It had also directed to discontinue a large portion of its operations including deposits and credit offerings by February 29 citing “persistent non-compliances and continued material supervisory concerns in the bank."

The RBI Governor said that these are well-thought-out decisions by the central bank taken after months and often years of interaction with the regulated entity.

While underscoring the RBI’s support to the fintech sector, the RBI Governor stressed that customer interest and financial stability are of prime importance. “The RBI has always been supportive to the fintech sector…RBI has played a big role in UPI. We have the regulatory sandbox for the last four years,” Das said, adding that the RBI is one of the very few central banks that has issued digital lending regulations.

Also read: 'We are open to working with Paytm if...': Axis Bank in talks with firm since January 31

Das was in Delhi for the 606th meeting of the Central Board of Directors of the RBI which was addressed by Finance Minister Nirmala Sitharaman. "Finance Minister highlighted the key thrust areas outlined in the interim Union Budget 2024-25 and the expectations from the financial sector. The Directors complimented the Finance Minister on the Budget and shared their views,” said a release by the RBI. The Board also reviewed the global and domestic economic situation and outlook, including the challenges posed by geopolitical developments and global financial market volatility, it further said.

Addressing reporters, Das also said the RBI expects GDP growth in 2024-25 to touch 7% noting that the overall momentum of economic activity is already strong.

The launch of UPI services in Mauritius and Singapore on Monday by Prime Minister Narendra Modi is in pursuance of the G20 decisions to increase the footprint of UPI and India’s digital public infrastructure around the world. “Sri Lanka is the third SAARC country with which India has entered into this arrangement after Nepal and Bhutan,” Das said, adding that Mauritius is the first African country where UPI is now being used.