Amid the continued issues experienced by leading fintech player Paytm, Finance Minister Nirmala Sitharaman to meet with the leaders of financial technology companies next week to convince them to carefully adhere to regulatory requirements.
The Reserve Bank took regulatory action against Paytm Payments Bank Ltd, a business promoted by One97 Communications Ltd, for failing to comply with a number of regulatory rules, including Know Your Customer (KYC) guidelines.
Sitharaman plans to meet with CEOs of fintech startups next week to learn about their concerns and challenges.
According to insiders, she would emphasise the importance of following regulatory guidelines because they are dealing with people’s money.
Senior officials from the Reserve Bank, the Finance Ministry, the Department for Promotion of Industry and Internal Trade, and other organisations are expected to attend the conference.
Last week, the RBI ordered Paytm Payments Bank Ltd (PPBL) clients and merchants to transfer their accounts to other banks by March 15, giving the troubled business a further 15 days to close most of its operations, including deposits and credit transactions.
The previous deadline was February 29, 2024, but the RBI has extended it by 15 days to accommodate PPBL customers (including merchants) who may require further time to make alternative arrangements in the wider public interest.
The RBI has also asked Paytm to terminate its ‘nodal accounts‘.
Speaking to the media, Reserve Bank Governor Shaktikanta Das stated that the central bank is always supportive of the fintech sector and is committed to supporting its rapid expansion.
Even Financial Services Secretary Vivek Joshi has stated that fintech companies must comply with legislation since with growth comes responsibility.
Also Read | RBI’s Action on PayTM Banks: Regulatory Misses that Led to the Downfall
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