Paytm Crisis: RBI Governor revealed why action was taken against Paytm Payment Bank

Paytm has been in the news for the past several days. After the action of Reserve Bank of India i.e. RBI on Paytm Payment Bank on January 31, 2024, the shares of Paytm have also continued to fall. Now RBI Governor Shaktikanta Das has talked about the action taken on Paytm Payment Bank.

Actually, Shaktikanta Das has said that there is no need to worry about the system regarding Paytm issue. We are talking only about Paytm Payments Bank.

He further said that our emphasis is always on bilateral activities with entities falling under the regulatory purview of RBI. Our focus is on encouraging every company to take the right steps. When banks or NBFCs do not take effective steps, we impose business restrictions.

FAQ RBI will issue

The RBI Governor further said that RBI will address the concerns of the people regarding the action taken regarding Paytm Payment Bank. A FAQ for this will be issued next week. He also said that being a responsible regulator, we take steps only keeping in mind the stability at the system level or the protection of the interests of depositors or customers.

The RBI Governor, without naming Paytm, indicated that if everything had been complied with, why would the central bank take action against a regulated entity.

RBI Deputy Governor Swaminathan J has also spoken on the action taken on Paytm Payment Bank. He said that action was taken against Paytm regarding continued non-compliance. Adequate time was also given for corrective action.

Statement issued by Paytm

At present, Paytm issued a statement saying that, we assure our users and merchant partners that the Paytm app is fully functional. And our services have not been affected. Paytm will continue to lead mobile payment innovation and we are expanding our partnerships with banks to offer seamless services.