• Source:PTI
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Paytm Crisis: Amid the ongoing crisis faced by fintech giant Paytm, Finance Minister Nirmala Sitharaman has decided to meet officials of fintech firms next week.

Paytm Payments Bank Ltd, a company promoted by One97 Communications Ltd which owns Paytm as well, has faced regulatory action by the Reserve Bank of India for failing to comply with regulatory norms continuously, which includes Know Your Customer (KYC) guidelines.

According to sources, Sitharaman will meet CEOs of fintech companies next week to listen to their issues and concerns. However, sources said she will sensitise them on the need to adhere to regulatory norms while dealing with people's money.

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The meeting is likely to be attended by top officials including the Reserve Bank, Ministry of Finance, Department of Industries, Domestic Trade Promotion. Last week, the Reserve Bank asked customers and merchants of Paytm Payments Bank Ltd (PPBL) to transfer their accounts to other banks by March 15.

The earlier deadline was February 29, 2024, which has been extended by 15 days in the interest of PPBL's customers (including traders), who may take some time to make alternative arrangements in the larger public interest.

The RBI also ordered the closure of the nodal accounts of One97 Communications Ltd, the owner of the Paytm brand. One97 Communications owns a 49 per cent stake in PPBL, but classifies it as a subsidiary of the company.

Speaking to the media, RBI Governor Shaktikanta Das said that the central bank will always support the fintech sector, which will ensure its rapid growth. Financial Services Secretary Vivek Joshi also said that fintech rules should be followed.

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