Paytm news: Hardly any room for review of action taken against Paytm Payments Bank: RBI Guv Das

After curbing fintech company Paytm’s banking unit’s operations, the Reserve Bank of India’s governor Shaktikanta Das has said there is “hardly any room for review”.

Talking to reporters in Delhi on Monday, Das said there was “hardly any room” to review the action taken against Paytm Payments Bank.

Das said that RBI takes action against regulated entities only after a comprehensive assessment. He reiterated that the central bank will be issuing a set of FAQs (Frequently Asked Questions) on the Paytm matter this week.

Addressing the issue during the February policy outcome announcement, the central bank said that it took the actions due to persistent non-compliance by Vijay Shekhar Sharma-run fintech company.

Paytm Payments Bank is the regulated banking entity that accepts the deposits for the Paytm users to then make transactions on the app.

The Patym app’s real-time payment interface falls under the RBI regulations and after February 29 the central bank has barred Paytm users from depositing any funds in the Paytm Payments Bank.“Our emphasis is always on bilateral engagement with the regulated entities with a focus on nudging them for corrective action,” Governor Das said during MPC’s outcome announcement. “And sufficient time is given for undertaking such corrective action. When such constructive engagement does not work or when the regulated entity does not take effective action, we go for imposing supervisory or business restrictions.””Suitable steps” will be taken to ensure that customer inconvenience, if any, is minimised, RBI Deputy Governor Swaminathan J. said.

He did not specify what steps the central bank plans to take.

Earlier on Monday, the company confirmed that its Independent Director Manju Agrawal left the company on February 1.

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