Finance Minister to Meet Fin-Tech Heads Amid Paytm Crisis
New Delhi:Amid the ongoing crisis faced by leading fin-tech firm Paytm, finance minister Nirmala Sitharaman has decided to meet heads of financial technology companies next week to persuade them to strictly follow regulatory norms.
The move by the minister comes at a time when Paytm Payments Bank Ltd, promoted by One97 Communications Ltd, faced regulatory actions by the Reserve Bank of India (RBI) for failure to comply with a host of regulatory norms, including Know Your Customer or KYC guidelines.
The meeting is expected to see participation from top officials of RBI, finance ministry, department for promotion of industry and internal trade, among others. “Ms Sitharaman will be meeting chief executives of fin-tech companies in the coming week to hear their concerns and problems. However, she will impress upon them the need to abide by regulatory norms as they are dealing with the money of individuals,” the sources said.
Last week, the RBI had advised customers as well as merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions. The earlier deadline was February 29, 2024, which the RBI has extended by 15 days keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements in larger public interest.
The central bank, however, has also directed termination of the 'nodal accounts' of One97 Communications Ltd, which owns the Paytm brand. One97 Communications holds a 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary. “The central bank is always supportive of the fin-tech sector and it is ensuring rapid growth of the sector,” RBI Governor Shaktikanta Das had said.