Mumbai, Feb 8: Reserve Bank of India Governor Shaktikanta Das said on Thursday that all its actions, including certain restrictions it imposed on Paytm’s associate bank, are in the best interest of the public.
“All our actions being a responsible regulator and supervisor are in the best interest of systemic stability and protection of depositors or customers’ interest. These aspects cannot be compromised. Individual entities should be mindful of such aspects for their long term success,” RBI Governor said at the post monetary policy press conference, responding to series of questions from reporters.
His remarks were in general and not just specific to Paytm. Das also explained how RBI as a regulator, if need arises, engages with a regulated entity.
“We give sufficient time to every regulated entity that is supervised by the RBI to comply with the regulatory requirements, and sometimes it may even look more than sufficient time. We are a responsible regulator, we are a responsible supervisor. If everything had been complied, I am talking in a general sense, why should we act. Afterall, we have a responsibility, its a responsible institution,” Das said.
“We are completely focussed on nudging the regulated entity to take corrective actions…And sufficient time is given for undertaking such corrective action. When such constructive engagement which we undertake, when that does not work or when the regulated entity does not effective action , we go for imposing supervisory or business restrictions.”