RBI rules out review of decision on Paytm Payments Bank

New Delhi: The Reserve Bank of India has ruled out a review of its recent regulatory action against Paytm Payments Bank. “The RBI takes all decisions after a lot of consideration and analysis. There is no review of the decision,” said RBI Governor Shaktikanta Das on Monday.

“At the moment let me say very clearly there is no review of this (PPBL) decision. If you are expecting a review of the decision, let me very clearly say there will be no review of the decision… Such decisions are taken after much consideration and after a lot of thought. It is not taken in a casual manner,” Das told reporters.

The RBI had last month issued directions to Paytm affiliate Paytm Payments Bank directing it to stop onboarding new customers with immediate effect. It had also directed to discontinue a large portion of its operations including deposits and credit offerings by February 29 citing “persistent non-compliances and continued material supervisory concerns in the bank."

The RBI Governor said that these are well-thought-out decisions by the central bank taken after months and often years of interaction with the regulated entity.

Das was attending the 606th meeting of the Central Board of Directors of the RBI which was addressed by Union Finance Minister Nirmala Sitharaman. "Finance Minister highlighted the key thrust areas outlined in the interim Union Budget 2024-25 and the expectations from the financial sector. The Directors complimented the Finance Minister on the Budget and shared their views,” the RBI said.