Action taken after persistent non-compliance: RBI on Paytm Payments Bank, shares fall 10%

RBI on Paytm: The supervisory action taken against One97Communciations-owned Paytm Payments Bank has been taken after persistent non-compliance, according to the Reserve Bank of India Deputy Governor Swaminathan J.

“Such actions are preceded by months or years of bilateral engagement. We provide time to regulated entities to take necessary action,” Swaminathan J responded to a media query during the post-monetary policy committee press briefing. Considering Paytm's large user base, he also said that suitable steps will be taken to ensure customers’ interests are protected.

The RBI Governor Shaktikanta Das said, “We give sufficient time to every regulated entity to comply with regulatory requirements. Sometimes we give more than sufficient time to comply. We are a responsible regulator, and supervisor. If everything has been complied with, why should we act?”.

While reassuring that there is no worry about the overall system at the moment, the RBI chief said that an FAQ will be issued about the Paytm crisis next week. The share price of One97 Communications fell close to 10 per cent to an intraday low of Rs 446.65 apiece on the NSE on Thursday, February 8, 2024.