During the launch event of Axis Bank’s ‘2023 Burgundy Private Hurun India 500’, Axis Bank Managing Director and Chief Executive Officer, Amitabh Chaudhry, expressed his willingness to work with Paytm, one of the key players in the fintech industry. Chaudhry stated that if the Reserve Bank of India (RBI) grants approval, Axis Bank would be open to collaborating with Paytm, recognizing the importance of Paytm as a player in the market.
“Subject to regulatory approval and if the regulator allows us to work with Paytm, of course we will work with them, they are an important player,” he stated.
Chaudhry highlighted Paytm’s importance in the market, noting that the majority of its transactions, approximately 75 per cent of the gross merchandise value, are facilitated through its popular UPI platform.
RBI Governor Shaktikanta Das had earlier said that there would be no reconsideration of the central bank’s actions against Paytm Payments Bank Ltd (PPBL). Governor Das emphasized that the RBI’s decisions are made after careful consideration and with the objective of protecting the interests of customers and depositors. While the RBI is supportive of the fintech sector, its primary focus is on ensuring the sustainable growth of the sector.
Governor Das stated that the RBI is not against any specific fintech company but rather aims to safeguard the interests of customers and depositors. The central bank is committed to fostering the rapid growth of the fintech sector while ensuring that regulatory guidelines are followed. Governor Das further highlighted that decisions are not made in a casual manner but are taken seriously in the public interest.
In a significant move against PPBL, the RBI directed the payments bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments from February 29. This regulatory action by the RBI has garnered attention within the industry and has led to discussions regarding the future of Paytm and its operations.
In response to the developments, the RBI is expected to release a set of frequently asked questions (FAQs) regarding the Paytm matter later this week. These FAQs will likely address common queries and provide further clarity on the regulatory actions taken by the RBI against PPBL.
Overall, the statements made by Axis Bank’s CEO and the RBI Governor highlight the ongoing discussions and considerations within the Indian fintech sector. While Axis Bank remains open to collaboration with Paytm, the final decision rests with the RBI, which is focused on protecting the interests of customers and depositors while supporting the growth of the fintech sector.