RBI governor Shaktikanta Das has ruled out any review of the declared action against Paytm Payments Bank Ltd (PPBL). Recently, the central bank famously directed Paytm to "stop accepting deposits or top-ups in customer accounts, wallets, FASTTags and other instruments after 29 February".
Paytm has been accused of indulging in large-scale non-compliance with regulations and supervisory concerns, reported Mint. Among others, RBI found "over 1,000 accounts linked with the same PAN in Paytm Payments Bank. As per reports, they were used money laundering" by shady individuals.
In its latest report, Bloomberg said that the Paytm financial meltdown has shown India's fintech sector for the adolescent it is. "It has also raised questions about the central bank's regulatory actions," the opinion piece says.
Meanwhile, as per a report by senior financial journalist Arti Singh, the RBI has more up its sleeve. "After Paytm Payments Bank and a set of lending companies, the central bank has now come hard on fintechs offering commercial/corporate cards. According to three sources, RBI has asked Visa and Mastercard to stop transactions of vendor payments," she wrote.
