Wed. Apr 17th, 2024

Paytm Payments Bank Crisis: RBI Refuses to Grant Concessions, Shaktikanta Das Clarifies No Review of Decision

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The Reserve Bank of India (RBI) has refused to grant any concessions to Paytm Payments Bank, including the migration of users’ accounts to other banks and extension of deadline after February 29. According to a Moneycontrol report, the central bank refused to grant any concession to the Paytm Payments Bank.

The company had sought an extension of the Feb. 29 deadline from the RBI and has also been seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service FASTag.

A group of startup founders had written to Prime Minister Narendra Modi, finance minister Sitharaman and RBI governor Shaktikanta Das in wake of the central bank’s clampdown on the fintech startup.

The RBI governor, Shaktikanta Das, on Monday made it clear that there was “hardly any room” to review the action taken against Paytm Payments Bank. Governor Das said the central bank’s decision came after a comprehensive assessment and was taken in the interest of the consumers.

The RBI had stopped Paytm Payments Bank from accepting all deposits from February 29. No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.

The RBI may soon release frequently asked questions (FAQs) on all aspects of the decision on Paytm Payments Bank, which will clarify any confusion in the minds of consumers about the central bank’s action against the fintech startup.

Paytm’s founder and chief executive officer Vijay Shekhar Sharma had met both the RBI and finance minister Nirmala Sitharaman. According to reports, the RBI had refused to grant concessions to the payment gateway. The company will have to transfer accounts to third party banks after February 29 to ensure that the digital payments function smoothly.

According to a Mint report, the Paytm founder was told by Sitharaman that action against his company was a regulatory process and the government cannot help the company with. – The Blaze Times

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