Reserve Bank of India (RBI) Governor Shaktikanta Das clarified the central bank's stance on fintech, emphasizing its support for the sector's expansion, as reported by The Economic Times.
Das underscored that the recent regulatory actions taken by the RBI were not aimed at stifling fintech growth but rather focused on addressing concerns related to regulated entities.
Specifically referencing the Paytm case, which has garnered significant attention in India's fintech landscape, the Governor explained the rationale behind the RBI's actions.
Earlier, the RBI had imposed restrictions on Paytm Payments Bank due to ongoing non-compliance issues and significant supervisory concerns, necessitating a deadline extension until March 15.
Das highlighted that the timeframe provided to Paytm Payments Bank until March 15 was deemed sufficient.
The directive required Paytm Payments Bank to wind up its operations by the stipulated deadline, following the central bank's suspension of new deposits or top-ups starting from February 29.
Acknowledging the transition challenges, Das noted that approximately 15-20 per cent of customers solely reliant on Paytm Payments Bank are migrating to other banking institutions.
While the RBI intensifies its oversight to safeguard against potential financial crises, it remains committed to fostering a conducive environment for the growth of India's financial sector.
Das emphasized the RBI's focus on facilitating sustainable growth within the financial ecosystem, ensuring stability while nurturing innovation.
"Our paramount responsibility is to ensure the consistent and sustainable expansion of the financial sector," stated Das during his conversation with The Economic Times.
Furthermore, Das expressed optimism regarding India's economic performance for the ongoing fiscal year ending in March, forecasting a growth rate nearing 8 per cent, in line with earlier projections. Looking ahead to the fiscal year 2024, Das anticipated GDP growth to surpass 7.6 per cent, potentially nearing the 8 per cent mark.
For the subsequent fiscal year, FY25, Das hinted at a growth rate of approximately 7 per cent, aligning with the forecasts set forth by the RBI's Monetary Policy Committee (MPC).
