RBI Governor Das Supports Fintech, Addresses Paytm Concerns
By siliconindia | Monday, February 12, 2024
Reserve Bank of India (RBI) Governor Shaktikanta Das affirmed the central bank's support for the fintech sector while emphasizing the commitment to safeguard customer interests and ensure financial stability. Addressing the media after an RBI board meeting, Das clarified that the action taken against Paytm Payments Bank is final, with upcoming FAQs addressing customer concerns. Stressing the importance of customer interests and financial stability, Das assured continued support for the fintech sector.
Das highlighted India's role in advancing digital public infrastructure and announced collaborations with Mauritius and Sri Lanka in linking UPI with their fast payment systems. He noted Sri Lanka as the third SAARC country, following Nepal and Bhutan, and Mauritius as the first African country to enter such arrangements.
Members of the RBI's board congratulated Finance Minister Nirmala Sitharaman on presenting a responsible Interim Budget. Das explained that fiscal consolidation by the government, keeping borrowing within limits, allows more resources for the private sector and aids bond yields. Lower government borrowing positively impacts the economy, contributing to inflation control. Das expressed confidence in India's strong economic momentum, projecting a 7% GDP growth for FY25 based on this trajectory. Das said the government has to take a call on what is a sustainable level of debt for the country. Even now, the debt-GDP ratio of advanced economies is far higher than that of developing economies, he added.
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