Paytm Payments Bank crisis: ‘Nothing against fintechs’, says RBI governor

Reserve Bank of India governor Shaktikanta Das on Wednesday said that it has taken action against Paytm Payments Bank, a regulated entity, and has nothing against fintech companies.

Das assured that 80-85 per cent of Paytm wallet users will not face any disruption due to the regulatory action and the remaining users have been advised to link their apps to other banks, PTI quoted the governor from a TV interview.

On January 31, the RBI had barred Paytm Payments Bank from accepting deposits, credit transactions, or top-ups in any customer accounts. The deadline for linking the wallet attached with the Paytm lender with other banks has been fixed for March 15.

Das said that the March 15 deadline is sufficient and there is no need for further extension. “RBI is and remains fully supportive of Fintech…RBI is all for Fintech to grow,” the governor said.

Giving an analogy, he said, one may own and drive a Ferrari but still one has to obey the traffic rules to avoid accidents.

When will NPCI decide on Paytm payment app license?
When asked on the National Payments Corporation of India (NPCI) deciding on the fate of Paytm payment app license, the RBI governor said,”So far, as RBI is concerned, we have informed them that we have no objection if NPCI considers the Paytm payment app to continue because our action was against the Paytm payment bank. The app is with the NPCI…NPCI will take a call…I think they should be taking a call shortly.”

The Paytm Payments Bank has been slapped with a fine of ₹5.49 crore for money laundering by the Financial Intelligence Unit (FIU). As per the FIU order, Paytm Payments Bank had failed to put in place an internal mechanism to detect and report suspicious transactions as stipulated under the anti-money laundering law.