Deputy Governor states RBI sanctions Paytm Payments Bank for non-compliance

Share via:


News Update

  • By     |    February 8, 2024

During a press conference following the Monetary Policy Committee meeting, Deputy Governor Swaminathan J revealed that the Reserve Bank of India (RBI) has imposed sanctions on Paytm Payments Bank Ltd (PPBL) due to “persistent non-compliance.” Swaminathan emphasized, “This is supervisory action on a regulated entity for persistent non-compliance.” He further explained, “Such actions are invariably preceded by months and at times years of bilateral engagement where we not only point out deficiencies but provide more than adequate time to take corrective action.”

As a result of the sanctions, PPBL has been prohibited by the central bank from accepting deposits or top-ups in any customer accounts, prepaid instruments, wallets, and FASTags after February 29. Bloomberg reported that the RBI may take further action after this deadline, and customers of PPBL will be unable to replenish their savings accounts or the widely-used digital payment wallet.

Addressing the potential transition of merchants from PPBL to different banks, the deputy governor stated, “In terms of what other banks will do is a business decision; they have got to carry out due diligence as per their board approved policies, and I am sure that they will carry out that.”

RBI Governor Shaktikanta Das emphasized the regulator’s approach to compliance, stating, “We give sufficient time to every regulated entity to comply with the regulatory requirements, and sometimes it may look (like) more than sufficient time.” Das further asserted, “We are a responsible regulator … If everything had been complied, I am talking about in a general sense, why should we act?”

According to reports, the RBI has declined to grant the concessions requested by Paytm’s founder and CEO Vijay Shekhar Sharma during a meeting regarding issues at PPBL.

Follow Startup Story





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Popular

More Like this

Deputy Governor states RBI sanctions Paytm Payments Bank for non-compliance


News Update

  • By     |    February 8, 2024

During a press conference following the Monetary Policy Committee meeting, Deputy Governor Swaminathan J revealed that the Reserve Bank of India (RBI) has imposed sanctions on Paytm Payments Bank Ltd (PPBL) due to “persistent non-compliance.” Swaminathan emphasized, “This is supervisory action on a regulated entity for persistent non-compliance.” He further explained, “Such actions are invariably preceded by months and at times years of bilateral engagement where we not only point out deficiencies but provide more than adequate time to take corrective action.”

As a result of the sanctions, PPBL has been prohibited by the central bank from accepting deposits or top-ups in any customer accounts, prepaid instruments, wallets, and FASTags after February 29. Bloomberg reported that the RBI may take further action after this deadline, and customers of PPBL will be unable to replenish their savings accounts or the widely-used digital payment wallet.

Addressing the potential transition of merchants from PPBL to different banks, the deputy governor stated, “In terms of what other banks will do is a business decision; they have got to carry out due diligence as per their board approved policies, and I am sure that they will carry out that.”

RBI Governor Shaktikanta Das emphasized the regulator’s approach to compliance, stating, “We give sufficient time to every regulated entity to comply with the regulatory requirements, and sometimes it may look (like) more than sufficient time.” Das further asserted, “We are a responsible regulator … If everything had been complied, I am talking about in a general sense, why should we act?”

According to reports, the RBI has declined to grant the concessions requested by Paytm’s founder and CEO Vijay Shekhar Sharma during a meeting regarding issues at PPBL.

Follow Startup Story





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

More like this

CynLr Raises $10 Mn To Automate Manufacturing Processes

SUMMARY CynLr aims to bolster its research & development...

Printful and Printify ink a merger deal

Two veteran European companies in the world of...

Infra.Market’s FY24 Profit Crosses INR 350 Cr

SUMMARY The IPO-bound startup has reported a profit of...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!