In a statement, that is seen as an espousal of the central bank's actions, Union Minister Rajeev Chandrasekhar has said that The Reserve Bank's regulatory action on Paytm Payments Bank has drawn the attention of fintech firms to the importance of complying with laws. This comes after many remarked and even critiqued the RBI decision. The fintech industry also commented and expressed their discontent with decision with the government.
The Electronics and Information Technology of MoS stressed that regulatory compliance cannot be "optional" for companies, rather it is an aspect every entrepreneur must pay full attention to.
The MoS also added, “In the FinTech space, the regulator who lays down the rules is the RBI. So, you have to listen to the RBI and you have to comply with the RBI”.
The RBI Action on Paytm
The Reserve Bank of India (RBI) dealt a significant blow to the Vijay Shekhar Sharma-led, by directing Paytm Payments Bank to cease its primary payment services by the end of February due to persistent non-compliance issues.
The central bank recently extended the deadline for cessation from from February 29 to March 15.
The government did not offer any direct relief to Paytm, but in the primary investigation conducted by the Enforcement Directorate for FEMA transgression, no violations were found. In some good news on the company shares gained 5 per cent last week, after, what has been a tumultuous period.
