Union Minister Rajeev Chandrasekhar reacts to Paytm controversy: ‘Being FinTech doesn’t absolve anybody from…’

Union Minister Rajeev Chandrasekhar reportedly reacted to the latest controversy on PayTm and said on Saturday that being a fintech or a technology company does not exempt any entity from regulatory oversight.

According to ET Now, the Union Minister of State for Entrepreneurship, Skill Development, Electronics and Technology said regulator has an absolute authority to regulate an entity. He was speaking on the sidelines of the launch of the Digital India Future Labs in New Delhi on Saturday.

ALSO READ: Morgan Stanley buys Paytm shares worth 244 crore

“A sectoral regulator has an absolute authority to regulate every entity within the sector. The RBI (Reserve Bank of India) has done so and this is within their purview to do so,” Chandrasekhar was quoted by MoneyControl as saying.

“Being a FinTech or being a tech company doesn’t absolve anybody from regulatory oversight,” Chandrasekhar added.

ALSO READ: Paytm captain stands strong’: Indian startups founders show support for Vijay Shekhar Sharma amid RBI’s curbs

What’s PayTM crisis?

On January 31, the RBI barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024.

Notably, the digital payments and services app Paytm is working and will continue to work as usual even after February 29, its CEO Vijay Shekhar Sharma said on Friday.

The founder and CEO of One97 Communications Ltd (OCL), which owns the Paytm brand, on social media platform X said the company is committed to serving the nation in full compliance.

“To every Paytmer, Your favourite app is working, and will keep working beyond 29 February as usual,” Sharma said.

Amid this, the Enforcement Directorate (ED) will probe Paytm Payments Bank if any fresh charges of fund siphoning are found, Revenue Secretary Sanjay Malhotra was quoted by Reuters as saying.

“If there are any fresh charges of money laundering against Paytm by the RBI, those will be investigated by Directorate of Enforcement as per the law of the land,” Malhotra said.

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Published: 03 Feb 2024, 04:56 PM IST

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