RBI Governor Says Govt Intends To Support FinTech Sector, No Review On Paytm Payments Bank

India's one of the top Fintech companies, Paytm is likely to face some more trouble. The Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday, during a press conference said there's no possibility of reconsidering the RBI's measures against Paytm Payments Bank (PPBL).

RBI Governor said restrictions on Paytm Payments Bank services were implemented after evaluating all aspects and details. He emphasized that while the RBI is supportive of fintech ventures, its foremost goal remains safeguarding the welfare of customers and depositors.

RBI Governor addressed the media after the meeting of the Central Board of Directors of the RBI. "At the moment let me say very clearly there is no review of this (PPBL) decision. If you are expecting a review of the decision, let me very clearly say there is (going to be) no review of the decision," the RBI Governor said.

According to the reports, the RBI Director's meeting was chaired by Union Finance Minister Nirmala Sitharaman.

The RBI governor added that the Central Banking Authority intends to support the fintech sector and is committed to ' protect the interest of customers as well as ensure financial stability'.

Earlier, on January 31, the RBI had restricted Paytm Payments Bank from accepting deposits after February 29.

"No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime," reads RBI's earlier order.

After RBI's stringent action, PayTM shares saw a major hit and lost its value upto 20 %.