Mumbai, Mar 7 (KNN) Reserve Bank of India (RBI) Governor Shaktikanta Das addressed concerns surrounding the scrutiny of fintech companies, emphasising the central bank's support for the sector's growth in a recent statement reported by ET.

Contrary to speculation, Governor Das affirmed that the RBI is not opposed to fintech innovations.

Rather, recent regulatory actions are aimed at ensuring compliance within the sector, without targeting any specific fintech entity.

The clarification comes amidst the backdrop of the recent Paytm case, where RBI imposed restrictions on Paytm Payments Bank due to compliance issues and supervisory concerns.

Governor Das reassured stakeholders that the measures taken were necessary for maintaining regulatory standards and fostering a healthy financial ecosystem.

Highlighting the timeline provided to Paytm Payments Bank until March 15 to address compliance issues, Governor Das emphasised the importance of adhering to regulatory directives.

Since the initial restrictions were imposed, approximately 15-20 percent of Paytm Payments Bank's customers have transitioned to other banking alternatives, indicating a shift in consumer behaviour.

Governor Das reiterated the RBI's commitment to supporting India's financial sector growth while ensuring stability and sustainability.

He emphasised the central bank's role in facilitating a conducive environment for innovation and development.

Speaking optimistically about India's economic outlook, Governor Das projected a growth rate of around 8 percent for the current financial year, closely aligning with earlier estimates.

Looking ahead to fiscal year 2024, he anticipated a GDP growth exceeding 7.6 percent, with potential for further expansion.

Addressing future prospects, Governor Das hinted at a growth rate settling around 7 percent for fiscal year 2025, in line with forecasts by the RBI's Monetary Policy Committee (MPC).

The Governor's remarks underscore the RBI's proactive approach towards fostering a robust fintech ecosystem while ensuring regulatory compliance and sustainable growth.

(KNN Bureau)