The Reserve Bank of India has ruled out a review of its recent regulatory action against Paytm Payments Bank. “The Reserve Bank of India takes all decisions after extensive consideration and analysis. The decision is not reviewed,” RBI Governor Shaktikanta Das said on Monday.
The Reserve Bank of India will soon issue a series of Frequently Asked Questions (FAQs) to address the inconveniences and difficulties faced by the bank’s customers and depositors, wallet holders and FASTag holders.
“I want to be very clear at this point there is no review of this. [PPBL] Decide.If you wish the decision to be reviewed, let me be very clear [going to be] There is no review of decisions…Such decisions are taken after careful consideration and deliberation. This was not taken haphazardly,” Das told reporters.
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The Reserve Bank of India last month issued instructions to Paytm Payments Bank, a subsidiary of Paytm, to stop accepting new customers with immediate effect. It also directed that most operations, including deposits and credit issuances, be halted by February 29, citing “ongoing irregularities and ongoing significant supervisory issues at the bank”.
The RBI Governor said these are well-thought-out decisions taken by the central bank after months and sometimes years of interaction with regulated entities.
While emphasizing the RBI’s support to the fintech industry, the RBI Governor stressed that customer interests and financial stability are of paramount importance. “The RBI has been supportive of the fintech industry… The RBI has played an important role in UPI. We have had a regulatory sandbox for the past four years,” Das said, adding that the RBI was among the very few central banks to issue regulations for digital lending one.
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Das was in Delhi to attend the 606th meeting of the Central Board of Directors of the Reserve Bank of India, where Finance Minister Nirmala Sitharaman addressed the meeting. “The Finance Minister highlighted the key areas outlined in the Interim Union Budget 2024-25 and the expectations of the financial sector. Directors appreciated the Finance Minister’s Budget and shared their views,” the RBI said in a release. “The report further stated that it reviewed the global and domestic economic situation and prospects, including challenges posed by geopolitical developments and fluctuations in global financial markets.
Speaking to reporters, Das also said the Reserve Bank of India expects GDP growth to reach 7% in 2024-25, noting that the overall momentum of economic activity is already strong.
Prime Minister Narendra Modi on Monday launched UPI services in Mauritius and Singapore in implementation of the G20 decision to expand the global reach of UPI and India’s digital public infrastructure. “Sri Lanka is the third SAARC country to enter into this arrangement with India after Nepal and Bhutan,” Das said, adding that Mauritius was the first African country to use the Unified Payments Interface.