In a recent report by PTI, Union minister Rajeev Chandrasekhar stated that regulatory compliance cannot be “optional” for companies, emphasizing the importance of adhering to the law. Chandrasekhar addressed the issue of Paytm Payments Bank’s regulatory action by the Reserve Bank of India (RBI), characterizing it as a case where an aggressive entrepreneur failed to recognize the need for regulatory compliance.
The RBI’s regulatory action on Paytm Payments Bank, which includes a ban on accepting new deposits from March 15, has drawn attention to the significance of complying with regulations for fintech firms. Chandrasekhar clarified that the action was not intended to rattle fintech companies, but rather to emphasize the necessity of adhering to the law.
Highlighting the association between Paytm Payments Bank and One97 Communications Limited, it was revealed that One97 Communications holds 49% of the paid-up share capital of PPBL, while Paytm founder and CEO Vijay Shekhar Sharma has a 51% stake in the bank.
The minister’s comments shed light on the broader implications of the regulatory action on Paytm Payments Bank, urging entrepreneurs to recognize the non-negotiable nature of regulatory compliance. The report serves as a timely reminder for companies to prioritize adherence to the law, as failure to do so can result in regulatory sanctions and oversight from governing bodies like the RBI.
The significance of this development extends beyond the specific case of Paytm Payments Bank, prompting a reevaluation of the entrepreneurial approach to regulatory compliance within the fintech industry. As regulatory scrutiny continues to evolve, Chandrasekhar’s remarks serve as a clarion call for companies to prioritize legal compliance as an integral aspect of their operations.
