In a resolute stance, Reserve Bank of India (RBI) Governor Shaktikanta Das has reiterated the central bank’s decision against Paytm Payments Bank, emphasizing that there is “hardly any room for review.” The directive, issued on January 31, mandated Paytm Payments Bank Ltd (PPBL) to cease accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29.
The RBI’s action against PPBL stemmed from persistent non-compliances and ongoing supervisory concerns, as articulated by the central bank. The decision also included the termination of the ‘nodal accounts’ of One97 Communications Ltd, the parent company of the Paytm brand.
Governor Das underscored the thoroughness of the RBI’s assessment process, noting that regulatory actions are taken against entities only after a comprehensive evaluation. Addressing concerns regarding the decision, Das emphasized on February 8 that the action against the Vijay Shekhar Sharma-led company was a result of “persistent non-compliance.”
Dispelling any notions of reconsideration or relaxation of the directive, Das firmly stated, “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.”
The governor’s unwavering stance underscores the RBI’s commitment to regulatory rigor and adherence to compliance standards within the banking sector. By affirming the decisiveness and thoughtfulness of the RBI’s actions, Das reinforces the central bank’s role as a vigilant guardian of financial stability and consumer protection.
As the saga surrounding Paytm Payments Bank unfolds, the clarity provided by Governor Das serves as a beacon of certainty in an otherwise tumultuous landscape. It reaffirms the importance of regulatory oversight in safeguarding the integrity and resilience of India’s financial ecosystem.
Moving forward, the RBI’s firm stance on regulatory enforcement sends a clear message to financial institutions: compliance is non-negotiable, and adherence to regulatory standards is paramount in maintaining trust and stability within the banking sector.