The Reserve Bank of India (RBI) is poised to issue clarification on the ongoing Paytm crisis, considering the fintech giant's substantial user base. Financial services secretary Vivek Joshi highlighted that RBI's restrictions were imposed to safeguard consumer interests, emphasizing the importance of compliance with regulatory requirements.
These remarks follow requests from the enforcement directorate and financial intelligence unit urging the RBI to furnish its report on actions taken against Paytm Payments Bank. The central bank's measures, implemented on January 31, 2023, included barring the bank from certain banking services, eliciting market volatility but ultimately leading to a marginal uptick in Paytm's shares on February 6.
Vijay Shekhar Sharma, Paytm's founder, held discussions with Finance Minister Nirmala Sitharaman, seeking clarity on the RBI's directives. Despite these engagements, Paytm pursued regulatory dialogue with the RBI to address concerns and requested an extension on the deadline.
In parallel, a group of Indian startup founders advocated for a review of the directives, urging constructive dialogue with authorities to navigate the fintech landscape effectively.
As regulatory scrutiny intensifies, stakeholders await further developments amidst the evolving Paytm saga.