In between the suspenseful situation with the fintech Giant Paytm, Finance Minister Nirmala Sitharaman has decided to meet heads of financial technology companies (fintechs) next week to persuade them to strictly follow regulatory norms. According to the information gathered, Sitharaman will be meeting CEOs of fintech companies next week to hear their concerns and problems.

Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, faced regulatory actions by the Reserve Bank for failure to comply with a host of regulatory norms, including Know Your Customer (KYC) guidelines.

The meeting is expected to see participation from senior officials of Reserve Bank, finance ministry, Department for Promotion of Industry and Internal Trade, among others. Last week, the RBI advised customers as well as merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions.

Last week there was a remarkable tussle between the central abnk of India, RBI and Paytm, where RBI has advised both customers and merchants associated with Paytm Payments Bank Ltd (PPBL) to transfer their accounts to other banks by March 15, extending the deadline from February 29. Reserve Bank Governor Shaktikanta Das had said the central bank is always supportive of the fintech sector and it is ensuring rapid growth of the sector. Even Financial Services Secretary Vivek Joshi had said that fintech should comply with the regulations as with scale comes responsibility.

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