RBI Governor Shaktikanta Das assured that 80-85% of Paytm wallet users won’t experience any disruptions due to regulatory actions, advising the remaining users to link their apps to other banks. The RBI’s directive on January 31 prohibited Paytm Payments Bank Ltd (PPBL) from accepting deposits, credit transactions, or top-ups in customer accounts.
Das emphasized that the deadline for linking wallets attached to PPBL with other banks is March 15, with no further extensions planned. He clarified that the RBI’s action was directed at a regulated entity, PPBL, and not against Fintech companies. The RBI supports innovation in the fintech sector and has introduced Sandbox for testing new tools.
While comparing the situation to driving a Ferrari and following traffic rules, Das highlighted the need to comply with regulations to avoid accidents. Regarding the decision on the Paytm payment app license by the National Payments Corporation of India (NPCI), Das mentioned that NPCI is conducting internal due diligence and should make a decision shortly.
Following regulatory actions, promoter Vijay Shekhar Sharma resigned as part-time non-executive Chairman of Paytm Payments Bank Limited last month, and the bank’s board has been reconstituted with new members.
On economic growth, Das indicated that high-frequency indicators suggest the fourth-quarter growth could exceed 5.9%, potentially leading to an annual growth rate exceeding 7.6%, with a chance of GDP growth close to 8% for the current year. The latest policy projection aims for a 7% growth rate for the next financial year.
Regarding inflation, Das noted that the latest inflation rate of 5.1% is still 110 basis points away from the target of 4%. However, he mentioned that inflation trends are declining, and the RBI’s focus is on achieving the 4% target on a durable and sustainable basis.
