Paytm and Fintech: FM Sitharaman hailed the youths' contribution to fintech; 'Won't comment on a particular company'

In an interview with Rahul Joshi, Editor-in-Chief, Network18, Finance Minister Nirmala Sitharaman said that the government continues to be enthusiastic about fintech and would like to engage with more stakeholders in the space, while refraining from commenting on the ongoing crisis at Paytm,

"I wouldn’t want to comment on a particular company. But fintech is an area in which all of us are very enthusiastic. India has contributed a lot to this sector," the finance minister said.

Earlier this week, the Reserve Bank of India (RBI) imposed severe restrictions on Paytm Payments Bank, after noting material discrepancies and non-compliance issues.

Read More: AI is forcing job seekers to develop new skillsets: FM Nirmala Sitharaman

The decision led many stakeholders in the sector, especially fintech startups, to question the regulator's stance towards the sector. Former managing director of BharatPe, Ashneer Grover, said that the central bank “does not want FinTechs in business".

“I don’t understand RBI. Clearly RBI does not want FinTechs in business - of late all regulations / moves are against Fintechs. Such moves will kill the sector altogether. The @FinMinIndia @nsitharaman @PMOIndia need to step in. Startups have been biggest creators of market cap and employment in last decade. Today IIM and IIT are struggling to place people - we as a country cannot afford such overreach ! Tom-Tom-Ing @UPI_NPCI to the world and punishing pioneers in the space is pure ‘Doglapan’," wrote Grover on X, formerly Twitter.

Read More: We are all very enthusiastic about fintech: FM Nirmala Sitharaman

The finance minister, in the exclusive interview with Network18, hailed the youths' contribution to the sector and assured that the government is enthusiastic about working in the space and encouraging more new-age firms to continue to build.

She further mentions the global recognition of India's fintech innovation, with many looking towards the country for financial technology solutions.

"India’s contribution in the sector has been globally recognised. Today, if people are looking at fintech solutions, they are looking at India. Our youth have contributed a lot in building capacities for themselves. This is an area we would certainly like to work with and encourage," said Sitharaman.