[ad_1]
Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar on Saturday said industry regulators have absolute powers to take action within their industries and being a fintech or technology company does not exempt them from regulatory oversight.
“The industry regulator has absolute powers to regulate every company as a regulated entity in the industry. The Reserve Bank of India (RBI) has done so and it falls within their purview. Being a fintech or technology company does not exempt you from any regulatory oversight of people,” Chandrasekhar said on the sidelines of an event in Delhi.
Click here to follow our WhatsApp channel
He was speaking at the inauguration ceremony of FutureLABS for Digital India at the Indian Institute of Information Technology (IIIT), New Delhi.
Noida-based fintech major Paytm has come under scrutiny from the Reserve Bank of India (RBI), with Paytm Payments Bank (PPBL) restricted in its ability to take new deposits and credit transactions in its services due to non-compliance and regulatory issues.
The action had serious consequences for the company. Shares of One 97 Communications, the parent company of fintech major Paytm, plunged 20 per cent to Rs 487.05 in BSE trading on Friday for the second consecutive day after the Reserve Bank of India suspended almost all trading in its digital payments unit PPBL.
Vijay Shekhar Sharma, founder and chief executive of One97 Communications, the parent company of Paytm, said during a conference call with analysts that compliance will be the company’s primary focus.
“The important thing for us to remember is that if we don’t make compliance and risk a core part of the business, then it won’t become the bigger business that we envision it to be. In terms of the group and entities, we now look at compliance first Regulatory, followed by technology,” Sharma said.
[ad_2]
Source link