"No review of decision on Paytm Payments Bank" says RBI Chief Shaktikanta Das
New Delhi, India: RBI Governor Shaktikanta Das on Monday reiterated that all decisions taken by the Central bank are carefully considered. The RBI Governor was speaking in the context of certain restrictions placed against Paytm Payments bank. The RBI Chief was speaking at the 606th meeting of the Central Board of Directors of the Reserve Bank of India which was held today at New Delhi
When questioned as to whether the Central bank will review the decision on Paytm Payments Bank, the Governor said a firm no.
"There is hardly any room for review. The word review being used is not appropriate. Our priority is that the customers should not face any inconvenience so we have given one month's time. The action was taken on January 31, time of one month (till 29 Feb) is given because customer interest is uppermost" the RBI Governor said.
"We will release the FAQ this week. I request you to wait until that FAQ is released, and the decisions we make at the Reserve Bank are carefully considered. Whether it's a bank, payment bank, NBFC, cooperative bank, or any other entity, if we take action against them after months, a year, or two years, we do so after careful deliberation. I'm not specifically referring to Paytm, but in general, when we don't see effective action being taken, we take necessary measures. We have clarified this before. Therefore, the action we have taken has been well thought out" RBI Governor Shaktikanta Das further said.
The RBI which has received several queries and clarifications on the issue of Paytm Payments Banks reiterated that it will issue a list of FAQs soon on this issue.
"I want to emphasize that you should wait for the FAQ we are issuing. In that FAQ, all the problems faced by customers will be addressed. Our priority is to ensure that customers and depositors do not face any inconvenience. That's why we have given a one-month time frame. The action was taken on January 31st, and we have given time until February 29th. We have provided this time because the transition, customer interest, and depositor interest are always our top priorities. Hence, we have given a one-month period for customers to make informed decisions and proceed with the transition if they wish" RBI Governor Shaktikanta Das said.
Earlier on February 9, the Board of One 97 Communications Limited, which operates Paytm, announced the formation of a Group Advisory Committee chaired by former SEBI Chairman M Damodaran, to work with the Board in further strengthening compliance, and regulatory matters.
In an official release, the company said that the Committee includes veteran professionals like MM Chitale, former president of the Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of Banking Codes and Standards Board of India nominated by RBI.
The Company's management says it is committed to drive sustainable business growth while adhering to a regulatory and compliance framework.
