 "Rajeev Chandrasekhar")
He was speaking at the inauguration of Digital India FutureLABS at the Indian Institute of Information Technology (IIIT), New Delhi.
Minister of State for Electronics and Information Technology Rajeev Chandrasekhar on Saturday said an industry regulator has absolute authority to take action within its sector, and being a fintech or a technology company does not absolve them from regulatory oversight.
“A sector regulator has absolute authority to regulate every company that is a regulated entity within the sector. The Reserve Bank of India (RBI) has done that and it is within its purview. Being a fintech or a technology company does not exempt anyone from regulatory oversight,” Chandrasekhar said on the sidelines of an event in Delhi.
He was speaking at the inauguration of Digital India FutureLABS at the Indian Institute of Information Technology (IIIT), New Delhi.
Noida-based fintech giant Paytm is under the RBI’s scrutiny and has seen restrictions on the functioning of Paytm Payments Bank (PPBL) regarding accepting new deposits and credit transactions across its services, citing non-compliance with regulations and oversight issues.
The move has had a severe impact on the company. Shares of One 97 Communications, the parent company of fintech giant Paytm, fell 20% for the second straight day to Rs 487.05 on the Bombay Stock Exchange on Friday after the RBI suspended almost all transactions of its digital payments unit, PPBL.
Vijay Shekhar Sharma, founder and CEO of One97 Communications, Paytm’s parent company, said in a conference call with analysts that compliance will be a top priority for the company.
“The bottom line is that if we don’t make compliance and risk a core part of the business, it won’t become the business we aspire to be. As a group and as an entity, we are now focusing on compliance first and then technology,” Sharma said.
First published: Feb 03, 2024 | 10:01 PM IST