PriyaPatelRajeev Chandrasekhar, Minister for State for Electronics and Information Technology, has stated that all companies, including fintech firms, are subject to regulatory oversight. This comes in response to the Reserve Bank of India (RBI) taking strict actions against Paytm Payments Bank for breaching regulatory standards and compliance protocols. Chandrasekhar emphasized that being a fintech company does not exempt anyone from regulatory scrutiny and that the regulator has the authority to regulate any entity.
On January 31, the RBI imposed significant business restrictions on Paytm Payments Bank, including a ban on accepting fresh deposits and conducting credit transactions after February 29. One of the major reasons for these strict measures was the bank’s failure to implement adequate Know-Your-Customer procedures, resulting in transactions worth crores of rupees.
This statement from Chandrasekhar highlights the importance of regulatory compliance for fintech firms. Fintech companies, like traditional financial institutions, must ensure they adhere to regulatory standards to maintain the trust of their customers and avoid regulatory actions.
