Reacting to RBI’s latest order for Paytm Payments Bank (PPBL) Former managing director of BharatPe, Ashneer Grover, said that the central bank “does not want FinTechs in business”.
In his latest social media post, former Shark Tank judge came down heavily on RBI and declared the move to be against all Fintech firms. He said that the decision will kill the sector altogether.
Also Read: Are you a Paytm Payments Bank customer? Here’s what you should know about RBI order against company
“ I don’t understand RBI. Clearly RBI does not want FinTechs in business – of late all regulations / moves are against Fintechs. Such moves will kill the sector altogether. The @FinMinIndia @nsitharaman @PMOIndia need to step in. Startups have been biggest creators of market cap and employment in last decade. Today IIM and IIT are struggling to place people – we as a country cannot afford such overreach ! Tom-Tom-Ing @UPI_NPCI to the world and punishing pioneers in the space is pure ‘Doglapan’,” wrote Grover on X, formerly Twitter.
Also Read: How RBI’s Paytm Payments Bank restrictions impacts you
Earlier in the day, the RBI had directed Paytm Payments Bank (PPBL) to stop accepting deposits or top-ups in any customer accounts, wallets, FASTTags and other instruments after February 29.
However, the payment bank is allowed to credit interest, cashback, or refunds to customers at times. The RBI order has come after persistent non-compliance and continued material supervisory concerns, RBI said in its statement. Two years ago the RBI had barred PPBL from taking new customers with immediate effect. Till now, Paytm group firm PPBL didn not released any official statement in response to RBI’s order.
“No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime,” the RBI said.
The RBI has also terminated ‘nodal accounts’ of One97 Communications Ltd and Paytm Payments Services at the earliest, in any case not later than February 29, 2024. One97 Communications holds a 49 per cent stake in Paytm Payments Bank Limited.
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Published: 31 Jan 2024, 11:00 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
