Reserve Bank of India (RBI) has imposed strict restrictions on Paytm Payments Bank for not complying with rules and ignoring their concerns. Following this, Ashneer Grover, the former founder of the fintech company BharatPe, said that this move by the central bank is against the interests of fintech companies. He urged Finance Minister Nirmala Sitharaman and the Prime Minister’s Office (PMO) to look into the matter. In a post, Grover expressed his confusion about RBI’s actions, stating that it seems like RBI wants to eliminate fintech companies and every new rule appears to be against them. He emphasized that such steps would destroy the entire fintech sector, which has created the most jobs in the past decade, enhancing the value of companies.
Ashneer Grover’s Reaction:
Ashneer Grover wrote in a post on X, “I don’t understand RBI. They clearly want to finish fintech companies. Every new rule and step seems to be against them. Such steps will destroy the entire fintech sector. Startups have created the most jobs in the past decade and increased the value of companies. Today, even getting jobs for IIM and IIT is becoming difficult. We cannot afford such interventions as a country. Showing the world UPI on one hand and punishing pioneers in this sector is pure ‘duplicity.'”
RBI has prohibited Paytm Payments Bank from accepting new deposits and conducting credit transactions after February 29. RBI stated that an external audit report found violations of several rules in the entire system of Paytm Payments Bank. These violations are considered serious, leading RBI to take strict action.
RBI clarified that after February 29, Paytm Payments Bank customers will not be able to deposit new funds in any account, mobile wallet, Fastag, NCMC card, etc. They will also not be able to conduct loan transactions or increase their balance. However, interest, cashback, or refunds can be deposited at any time. RBI emphasized that Paytm Payments Bank customers have complete freedom to withdraw or use the deposited money in their accounts. This includes savings accounts, current accounts, mobile wallets, Fastag, National Common Mobility Card (NCMC), etc.