RBI Governor Shaktikanta Das said that RBI will soon issue a set of Frequently Asked Questions (FAO) targeting inconveniences and difficulties being faced by customers and depositors.
The Reserve Bank of India has denied any possibility of granting relaxation to Vijay Shekhar Sharma's Paytm Payments Bank.
Talking to the reporters, on Monday, RBI Governor Shaktikanta Das said that there is "hardly any room" to review the action taken against PPBL, the banking arm of One97 Communications. He further said that the RBI takes all decisions after a lot of consideration and analysis.
Das said that RBI will soon issue a set of Frequently Asked Questions (FAO) targeting inconveniences and difficulties being faced by customers and depositors, wallet holders, and FASTag holders of the bank.
On 31 January, RBI directed the Paytm Paytm Payments Bank which is the associate company of Paytm to stop onboarding new customers as well as accepting payments in customers' wallets, FASTags, and credit offerings from February 29.
On March 11, 2022, RBI had barred PPBL from onboarding new customers with immediate effect.
In its latest action, RBI has asked the PPBL not to take deposits/ credit transactions/top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards, among others, after February 29.
However, the central bank has allowed credit of interest, cashback, or refunds even beyond February 29.
Persistent non-compliance and ongoing material supervisory concerns within the bank have prompted stringent action from the RBI.
While emphasizing that RBI is supportive of the fintech sector, Das said it is also committed to protecting the interest of customers as well as ensuring financial stability.
Meanwhile, One97 Communication has established an advisory committee to look into the compliances and navigate the regulatory challenges faced by the company.
The fintech has appointed former Securities and Exchange Board of India (SEBI) chairman Meleveetil Damodaran, who is known for compliance-related reforms in his tenure at SEBI.
Among the other members who will advise the fintech are Mukund Manohar Chitale, former president of the Institute of Chartered Accountants of India (ICAI) and former chairman of the National Advisory Committee on Accounting Standards (NACAS), and veteran banker Ramachandran Rajaraman, former chairman and managing director of Andhra Bank.