RBI governor Shaktikanta Das says no immediate review of Paytm Payments Bank restrictions

Shaktikanta Das, governor, Reserve bank of India (RBI) has said that the body isn’t looking into reviewing the curbs on Paytm Payments Bank immediately, saying that these orders are only issued after comprehensive deliberation and assessment.

"We take decisions after a lot of consideration and analysis. At the moment, there is no review of the decision (on PPBL),” he said.

Das added that an FAQ will be sent out this week to address all concerns of FastTag holders, customers and depositors who may be impacted by the RBI’s restrictions.

The governor also made it clear that the RBI continues to show interest in and support innovation in the fintech sector and will keep doing so.

On the evening of January 31, the Reserve Bank of India barred Paytm Payments Bank from undertaking any banking activities whatsoever — no deposits, no credit transactions, no wallet top ups, no bill payments, nothing — after February 29.

These are grave violations, which left the bank’s customers at risk of data breaches and frauds at the very least, and larger issues around a lack of transparency from the promoters, including and not limited to, submitting false compliance reports to the regulator on various instances, as per CNBC TV18.

“We acknowledge the recent RBI directive regarding Paytm Payments Bank and are taking this very seriously. As indicated in the RBI press release dated January 31st, this action stems from an ongoing supervisory engagement. We respect the RBI's decision and are working diligently to address the concerns raised. We understand there may be questions and speculation surrounding this matter. However, we encourage everyone to rely on official communication from the RBI and Paytm Payments Bank for accurate information. We remain committed to acting responsibly as we work to resolve these matters,” Paytm told CNBC TV18.