RBI Governor Shaktikanta Das has reaffirmed the central bank's decision regarding Paytm Payments Bank, dismissing any possibility of a review.
Speaking to the media after a meeting of the RBI's central board of directors, Das pointed that the decision was made after a thorough evaluation of the firm's operations, emphasizing the importance of regulatory compliance and public interest.
"There is no review of the decision," said Das, addressing expectations of a potential reconsideration. He emphasized that the upcoming Frequently Asked Questions (FAQ) would address concerns faced by various stakeholders, including FASTAG users, wallet users, and account holders.
"When we make a decision, we discuss all pros and cons... Decisions are not taken in a casual manner but in the most serious manner in public interest," Das said.
The RBI's decision, announced on January 31, entails the cessation of most operations of Paytm Payments Bank, effective March 1, 2024, citing "persistent non-compliances and continued material supervisory concerns."
Despite this, Das expressed the RBI's support for the fintech sector, highlighting its significance in catering to millions of customers while stressing the paramount importance of customer interest and financial stability.
In a separate development, Union Finance Minister Nirmala Sitharaman addressed the RBI's central board of directors in the customary post-Budget meeting.
The board commended the finance minister on the Budget and deliberated on the global and domestic economic situation, including challenges posed by geopolitical developments and financial market volatility.
During the media interaction, Das also touched upon the government's fiscal consolidation efforts, indicating that borrowing has been kept within limits.
"Lower quantum of borrowing will ensure that more resources are left in the banking system to meet the requirements of the private sector," he explained.
He highlighted the positive impact of lower borrowing on bond yields, anticipating a moderation in inflation and subsequently, a softening of interest rates and government borrowing costs.
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