Ashneer Grover, who co-founded and led BharatPe, has expressed his outrage over the Reserve Bank of India (RBI)’s action against Paytm, one of the leading fintech companies in India. In a post on X, the social media platform formerly known as Twitter, Grover called the RBI’s restrictions on Paytm ‘Doglapan’, a Hindi word meaning foolishness or absurdity. He warned that such moves from the RBI will destroy the fintech sector in India. He urged the Prime Minister’s Office, the finance ministry and the finance minister Nirmala Sitharaman to intervene and rectify the situation.
RBI’s reasons for barring Paytm Payments Bank The RBI has prohibited Paytm Payments Bank from accepting any deposits, top-ups, or credit transactions in any customer account, wallet, FASTag, or NCMC card after February 29, 2024, citing non-compliance of regulations and supervisory concerns. “The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the RBI said in a statement. The only exceptions are interest, cashbacks, or refunds that may be credited anytime, the RBI added. The central bank also said that customers of Paytm Payments Bank can withdraw or use their balances from their accounts, including savings, current, prepaid, FASTag, or NCMC cards, without any restrictions, up to their available balance”.
RBI Bar Poses Rs 500-Cr Loss Risk For Paytm. Click Here