Regulatory Institutions Destroyed Under Modi Govt, Allege Rahul, Priyanka Over RBI Action Against Paytm

Congress leaders Rahul Gandhi and Priyanka Gandhi Vadra criticized the Modi government for the Reserve Bank of Indias action against Paytm Payments Bank, alleging the destruction of regulatory institutions and political patronage.

Congress leaders Rahul Gandhi and Priyanka Gandhi Vadra have strongly criticized the central government over the Reserve Bank of India's (RBI) action against Paytm Payments Bank. They allege that regulatory institutions are being undermined under the current administration.

Rahul Gandhi's Statement

In a Hindi post on social media, Rahul Gandhi expressed his concern about the Paytm fraud, stating that it exemplifies how the government's actions have led the country towards destruction by compromising the independence of institutions. He highlighted the silence of regulatory bodies like the Securities and Exchange Board of India (SEBI) and the RBI despite Paytm's alleged fraudulent activities, which included featuring the Prime Minister and former Congress President in full-page newspaper advertisements.

Gandhi emphasized that such political patronage has shielded numerous companies that have amassed wealth by exploiting the hard-earned money of citizens. He asserted that the collapse of regulatory institutions guarantees the public's vulnerability to exploitation.

Priyanka Gandhi Vadra's Perspective

Priyanka Gandhi Vadra drew attention to Paytm's significant profits following demonetization, suggesting that government support may have played a role in this success. She noted that when the company launched its shares at an inflated price, many middle-class Indians invested heavily in them.

Vadra expressed concern over the sudden ban imposed by the RBI on the company's operations due to financial irregularities. She highlighted the subsequent decline in Paytm's shares by 75%, resulting in an estimated loss of around Rs 18,000 crore. She emphasized that this loss directly impacts thousands of honest Indians who had invested in the company.

Vadra asserted that all institutions in the country are being undermined under the current government's rule. She argued that if SEBI and RBI maintained their independence, the common Indians' money could have been protected.

RBI's Response

In a statement, the RBI clarified that its directives to Paytm were issued due to persistent non-compliance and ongoing material supervisory concerns. The central bank had previously barred PPBL from onboarding new customers with immediate effect on March 11, 2022.

The RBI's actions underscore the importance of regulatory oversight and compliance in the financial sector to safeguard the interests of consumers and investors.