Reserve Bank of India (RBI) Governor Shaktikanta Das affirmed the central bank’s backing for the fintech sector while emphasizing the importance of safeguarding customer interests and financial stability. Speaking after the RBI’s board meeting, Das clarified that actions taken against entities like Paytm Payments Bank are made after thorough consideration, ensuring seriousness and accountability.
He said, “Let me be obvious that there is no review of the action taken against Paytm Payments Bank. The FAQ that will be coming soon will deal with customer interest issues.”
He added, “RBI promotes and will continue to promote fintech, but customer interests and financial stability are of prime importance. There should not be any doubt about RBI’s support for the fintech sector,”
Das highlighted India’s role in advancing digital public infrastructure, mentioning Prime Minister Narendra Modi’s launch of UPI linkage with Mauritius’ fast payments system and Sri Lanka’s inclusion in UPI collaborations. Das also noted India’s engagement with other SAARC nations like Nepal and Bhutan and its partnership with Mauritius as the first African country in such arrangements.
Regarding fiscal matters, Das emphasized the significance of responsible fiscal policies in controlling government borrowing, which in turn benefits private sector resources and bond yields. Lower government borrowing positively influences economic conditions and aids in managing inflation. Das pointed out India’s robust economic momentum, projecting a 7% GDP growth for FY25, while underscoring the need for the government to determine a sustainable debt level for the country, noting the comparatively lower debt-GDP ratio of developing economies compared to advanced ones.