Eeshna Dashottar, Pune
Reserve Bank of India (RBI) Governor Shaktikanta Das talked about the body’s regulatory actions on Paytm Payments Bank. He stated that around 85% of Paytm wallet users will have no hassles in their transactions through the medium. The reason for such a high percentage of people remaining unaffected is that their wallets are already linked to other bank accounts.
The RBI had placed strict restrictions on Paytm Payments Bank Limited (PPBL) on 31st January 2024 for services like accepting deposits, top-ups, wallet-based transactions, prepaid services, FASTags and NCMC cards after 29th February 2024. These regulatory actions were taken because of non-compliance issues. The deadline was further extended to 15th March 2024. No further extensions would be made for the users, as mentioned by the authorities to Indian Express.
RBI Governor Shaktikanta Das also addressed the Paytm wallet users who have not linked their wallets to other banks and insisted that these users must get the necessary arrangements made by 15th March 2024. The Governor also mentioned that RBI has advised the Paytm Payment Bank to shift such users to other banks as these banks are also taking in new customers proactively. He assured the close working of the National Payments Corporation of India (NPCI), the retail payments and settlement body, with several banks to ensure a quick and hassle-free shift of such users.
Questions and doubts have risen regarding the RBI’s stance on Fintech companies since the body’s action against PPBL. To this, Das highlighted that RBI is in complete support of the fintech industry and that “RBI is all for fintech to grow” (as he mentioned in an interview with ET Now).
NPCI will also be taking decisions on the issue of license for the Paytm payment app, as stated by Das. He stated that RBI will support the decision of NPCI if they plan to allow the Paytm payment app to continue its services. The action by RBI, as he clarifies, was only against the Payment payment bank and not the app itself. Furthermore, reconstitution and changes were observed in its board as PPBL faced the restrictions by RBI.