“Union Minister Rajeev Chandrasekhar Urges: Regulatory Compliance is Essential for Fintech companies”

In a recent interview with news agency PTI, Union Minister Rajeev Chandrasekhar highlighted the significance of regulatory compliance for fintech firms, citing the Reserve Bank of India's (RBI) action against Paytm Payments Bank as a wake-up call.

 

Chandrasekhar emphasized that the Paytm Payments Bank incident underscores the importance of adhering to laws, noting that even ambitious entrepreneurs must prioritize regulatory compliance. The minister stressed that non-compliance with regulations cannot be overlooked, echoing the central bank's rationale for its actions against the payment gateway.

 

The RBI has granted Paytm Payments Bank an extension until March 15 to cease deposits. According to the RBI's directive, after March 15, 2024, no further deposits, credit transactions, or top-ups will be permitted in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc., except for interest, cashbacks, sweep-ins from partner banks, or refunds.

 

This development underscores the importance of regulatory adherence for fintech firms and serves as a reminder of the consequences of non-compliance.