RBI is all for fintech sector, PPBL action only against a regulated entity: Guv Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday clarified that the central bank is not against the growth of the fintech sector and further stated that the regulatory action was directed towards a single entity but not against the entire sector. 

In an interview to ET Now television channel, Das said the action is against the Paytm Payments Bank in particular. "The RBI’s action was against a regulated entity. It was not against any fintech company. I fail to under why a narrative is built that RBI has acted agianst a fintech company. In this case (PPBL), the action is against Payments bank. I am not being defensive." 

In January this year, the RBI barred the Paytm Payments Bank from accepting further deposits, top-ups or credit transactions into its operated wallet or accounts from February 29. Last month, it extended the deadline for Paytm Payments Bank services to March 15, from the previous February 29, stating that the customers can make deposits, credit transactions, prepaid services, wallets, FASTags, National Common Mobility Cards till March 15, 2024.

Das told ET Now that the central bank has been supportive of fintechs and counted initiatives such as creation of a fintech department and other measures to promote fintech industry. "We have done nothing so far as far as fintechs are concerned. The RBI remains fully supprotve of fintechs. RBI is all for fintechs," said Das.

He said RBI intends to ensure that there are no major accidents in the fintech sector and that the rules of the game are adhered to. "Our responsibility is to ensure that financial sector grows with a good speed but in a sustainable manner," he added.