RBI On Paytm Crisis: Reserve Bank of India (RBI) has made it clear that the decision taken on Paytm Payments Bank will remain the same. Governor Shaktikanta Das has said that this decision has been taken in the interest of the customers.
Paytm does not seem to be getting any relief from the Reserve Bank of India (RBI). Fintech firm founder Vijay Shekhar Sharma had recently urged the Finance Ministry and RBI to reconsider this matter, but on Monday, Governor Shaktikanta Das clearly refused to take action on Paytm and said that Paytm Payment Bank ) will not be reconsidered in any way.
Governor said – no reconsideration of the decision
RBI Governor said that the decision to take action on Paytm’s banking arm Paytm Payments Bank has been taken on the basis of adequate assessment and keeping in mind the interests of the customers. After the meeting of the Central Board of Directors of RBI, he said that I want to say clearly that the decision taken in the case of Paytm Payments Bank will not be reconsidered. He said that when we take any decision, we take it after evaluating all its aspects and in-depth discussion, which are in public interest.
PPBL services will be banned from 29th February
It is noteworthy that on January 31, the Reserve Bank of India (RBI) had issued an order to ban the services of Paytm Payment Bank, the banking branch of Paytm, from February 29, 2024. The Reserve Bank had ordered regulatory action against Paytm Payments Bank over non-compliance and supervisory concerns. It has asked the bank to stop deposits, transactions, prepaid and top-ups in customer accounts, wallets, FASTags, NCMC cards. Along with this, a ban has been imposed on creating any new customer after 29 February 2024.
‘No need to worry for fintech sector’
Reserve Bank Governor Shaktikant Das said that there is no need to worry about the fintech system, it is only a matter of a particular institution. He further said that he is not against any fintech company and wants continuous growth of this sector. But being a banking regulator, our primary objective is to protect the interests of customers and depositors, as millions of customers visit fintech platforms and keep money in their wallets.
What will happen to Paytm now?
RBI has made it clear that the decision taken on Paytm Payments Bank will remain the same. In such a situation, it is important to discuss what will change after February 29 and what options Paytm has. So let us tell you that you will not be able to make any deposit in Paytm payment account, wallet, or FASTag, although the amount already present in it can be used. With this, you will be able to use Paytm UPI to send and receive money from your bank account.
After this action, Paytm Founder had assured his employees and users during a townhall that after the closure of the services of Paytm Payments Bank, we are also working with other banks for partnership.