RBI Governor Shaktikanta Das addressed concerns on Thursday, stating that the recent actions taken against Paytm were driven by a “lack of compliance” within the fintech company. Deputy Governor Swaminathan J. echoed this sentiment, emphasizing that the regulatory actions were a result of “persisted non-compliance.”
While Governor Das refrained from specifying the exact deficiencies leading to the RBI’s intervention, he underscored the importance of compliance within regulated entities. He reiterated the RBI’s role as a responsible regulator and questioned the necessity of regulatory action if all requirements were met by the entity.
Governor Das elaborated on the RBI’s approach, indicating that the central bank engages with entities bilaterally, offering ample time for compliance. Only when constructive engagement fails or when necessary actions are not taken by the regulated entity, does the RBI resort to imposing business restrictions or supervisory actions, he explained. These measures, he assured, are proportionate to the gravity of the situation and are driven by concerns related to systemic stability or safeguarding depositors’ and customers’ interests.
Furthermore, Governor Das affirmed the RBI’s support for innovation in the financial sector, dispelling any doubts regarding the central bank’s stance. Acknowledging public feedback on the matter, he announced the RBI’s intention to address concerns by releasing a set of frequently asked questions (FAQ) to provide clarity and assurance to stakeholders.
The Governor’s statements underscore the RBI’s commitment to maintaining regulatory compliance while fostering an environment conducive to innovation in the financial sector.
