RBI action against Paytm draws ‘attention of fintech entrepreneurs’ towards compliance: IT Minister Chandrashekhar
New Delhi: Recent regulatory actions taken by the Reserve Bank of India (RBI) Paytm Payments Bank has highlighted the importance of adhering to Law For other fintech firms and compliance According to Union Minister Rajeev Chandrashekhar, there cannot be an “optional”.
In an interview with news agency PTI, the Minister of State for Electronics and IT explained that the Paytm Payments Bank case demonstrated how a highly ambitious entrepreneur failed to understand the importance of regulatory compliance. Chandrashekhar clarified that no company, irrespective of its size or origin, can escape the consequences of non-compliance with the law.
Meanwhile, Chandrashekhar refuted the notion that the RBI’s actions have unsettled the entire fintech industry and said, “And the notion that the RBI… regulator’s action against Paytm Payments Bank has unsettled fintechs … I don’t think that’s right.” Character sketch. I think this has drawn the attention of fintech entrepreneurs to the fact that you also need to know how to comply with the law. Regulatory compliance is not an optional thing for any country in the world, certainly not in India, and it is something they (entrepreneurs) should pay more attention to.”
The Minister further explained that entrepreneurs often get so engrossed in building their businesses that they ignore the rules set by the regulatory bodies.
Chandrasekhar emphasized that there can never be a situation where a company, be it social media or fintech, can expect to violate the law and escape the consequences.
The issues surrounding Paytm Payments Bank revolve around its association with One97 Communications Limited, which holds a 49% stake in the bank. Paytm founder and CEO Vijay Shekhar Sharma holds the remaining 51% stake. RBI’s regulatory actions based on persistent non-compliance and supervisory concerns prompted the central bank to advise Paytm Payments Bank customers and merchants to transfer their accounts to other banks by March 15.
Addressing the concerns of fintech firms and merchants, RBI clarified that Paytm QR Code, Paytm Soundbox and Paytm POS terminals will continue to function if they are linked to other banks instead of Paytm Payments Bank. In response to the situation, One97 Communications has transferred its nodal account to Axis Bank, ensuring continuity of Paytm QR, Soundbox and card machines even after the March 15 deadline.
In an interview with news agency PTI, the Minister of State for Electronics and IT explained that the Paytm Payments Bank case demonstrated how a highly ambitious entrepreneur failed to understand the importance of regulatory compliance. Chandrashekhar clarified that no company, irrespective of its size or origin, can escape the consequences of non-compliance with the law.
Meanwhile, Chandrashekhar refuted the notion that the RBI’s actions have unsettled the entire fintech industry and said, “And the notion that the RBI… regulator’s action against Paytm Payments Bank has unsettled fintechs … I don’t think that’s right.” Character sketch. I think this has drawn the attention of fintech entrepreneurs to the fact that you also need to know how to comply with the law. Regulatory compliance is not an optional thing for any country in the world, certainly not in India, and it is something they (entrepreneurs) should pay more attention to.”
The Minister further explained that entrepreneurs often get so engrossed in building their businesses that they ignore the rules set by the regulatory bodies.
Chandrasekhar emphasized that there can never be a situation where a company, be it social media or fintech, can expect to violate the law and escape the consequences.
The issues surrounding Paytm Payments Bank revolve around its association with One97 Communications Limited, which holds a 49% stake in the bank. Paytm founder and CEO Vijay Shekhar Sharma holds the remaining 51% stake. RBI’s regulatory actions based on persistent non-compliance and supervisory concerns prompted the central bank to advise Paytm Payments Bank customers and merchants to transfer their accounts to other banks by March 15.
Addressing the concerns of fintech firms and merchants, RBI clarified that Paytm QR Code, Paytm Soundbox and Paytm POS terminals will continue to function if they are linked to other banks instead of Paytm Payments Bank. In response to the situation, One97 Communications has transferred its nodal account to Axis Bank, ensuring continuity of Paytm QR, Soundbox and card machines even after the March 15 deadline.
