Narrative that RBI is killing fintech sector not true: Das

Real GDP growth may surpass government’s estimate of 7.6%

- PIYUSH SHUKLA

RESERVE BANK OF India (RBI) governor Shaktikanta Das on Wednesday strongly defended the action against Paytm Payments Bank. Das said he failed to understand the narrative that the banking regulator was killing the fintech sector when the restrictions were essentially against the business operations of a bank.

Bullish on the country's growth prospects, Das said the real GDP growth will likely exceed government's new estimate of 7.6% for FY24 and move closer to 8%.

Dispelling doubts that the RBI was being unduly harsh on fintechs, in an interview to ET Now, Das said, "The action was against a regulated entity (RE). In this case, it is a payments bank and not against any fintech company. I fail to understand and do not see any reason why a narrative was building up, or was built up, as if RBI has taken some measures against fintech companies." He added that the RBI does not regulate fintech companies unless they are NBFCs.

On January 31, the RBI imposed various business restrictions on Paytm Payments Bank, including a ban on accepting fresh deposits and undertaking credit transactions after February 29, which was later extended to March 15.