Finance Minister Nirmala Sitharaman (File picture: PTI)
FM Sitharaman can be assembly CEOs of fintech corporations subsequent week to listen to their considerations and issues.
Amid the continued drawback confronted by main fintech participant Paytm, Finance Minister Nirmala Sitharaman has determined to satisfy heads of economic know-how corporations subsequent week to steer them to strictly comply with regulatory norms.
Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, confronted regulatory actions by the Reserve Bank for failure to adjust to host of regulatory norms, together with Know Your Customer (KYC) tips.
Also Read: ‘Today, Tomorrow & Always’: Paytm Assures Its QR, Soundbox To Keep Working After March 15
According to sources, Sitharaman can be assembly CEOs of fintech corporations subsequent week to listen to their considerations and issues.
However, sources mentioned, she is going to impress upon them the necessity to abide by regulatory norms as they’re coping with cash of people.
The assembly is anticipated to see participation from senior officers of Reserve Bank, finance ministry, Department for Promotion of Industry and Internal Trade, amongst others.
Last week, the RBI suggested clients in addition to retailers of Paytm Payments Bank Ltd (PPBL) to shift their accounts to different banks by March 15, giving 15 extra days to the beleaguered entity to shut most of its operations, together with deposit and credit score transactions.
The earlier deadline was February 29, 2024, which the RBI has prolonged by 15 days maintaining in view the curiosity of shoppers (together with retailers) of PPBL who might require slightly extra time to make different preparations in bigger public curiosity.
RBI has additionally directed termination of the ‘nodal accounts’ of One97 Communications Ltd, which owns the Paytm model.
One97 Communications holds a 49 per cent stake in PPBL however classifies it as an affiliate of the corporate and never as a subsidiary.
Speaking to media, Reserve Bank Governor Shaktikanta Das had mentioned the central financial institution is all the time supportive of the fintech sector and it’s guaranteeing speedy progress of the sector.
Even Financial Services Secretary Vivek Joshi had mentioned that fintech ought to adjust to the rules as with scale comes duty.
(This story has not been edited by News18 employees and is revealed from a syndicated information company feed – PTI)
