Rajeev Chandrasekhar: Union Minister Rajeev Chandrasekhar has justified the action taken by the Reserve Bank of India (RBI) against Paytm Payments Bank, saying that only Becoming a FinTech company does not give you the freedom to make mistakes. Minister of State for Electronics and IT Chandrashekhar said that action has been taken against Paytm Payments Bank in violation of rules. You have to follow the rules to do business in the country.
The regulator has full authority to enforce the rules
According to the report of Money Control, Union Minister Chandrashekhar was speaking at the inauguration of Digital India Future Labs in New Delhi on Saturday. He said that just because you are a fintech or tech company, you cannot get regulatory exemptions. The regulator has been given full power to make rules and investigate for every company coming within the sector. RBI has taken this action within the scope of its rights.
Danger of money laundering due to irregularities in KYC of millions of customers
RBI had taken strict action against the bank due to violation of various rules. The bank has been banned from taking any kind of deposits. However, Paytm is making continuous efforts to recover from the impact of this decision of RBI. The central bank had said that the Payments Bank had made irregularities in the KYC of lakhs of customers. Due to this, risks of data errors and money laundering have arisen.
Bank may be closed after 29th February
It is feared that Paytm Payments Bank may be closed after RBI action. The deadline of 29th February has been fixed for the Payments Bank. It is believed that after this RBI can impose a complete ban on the bank.
There will be no impact on Paytm app
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