India’s Monetary Policy Briefing Is Dominated by Questions on Paytm
A QR code for the Paytm payment system in Mumbai.
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The news conference following the Indian central bank’s monetary policy meeting typically centers on topics such as economic growth, inflation and liquidity. On Thursday, however, the discussion was largely dominated by questions about the fate of fintech pioneer Paytm’s bank.
The Reserve Bank of India last week ordered Paytm Payments Bank Ltd. to stop accepting deposits in its accounts or popular digital wallet after Feb 29, dealing a massive blow to the ambitions of Paytm and its billionaire founder Vijay Shekhar Sharma. The action, RBI officials said at the briefing, came after persistent non-compliance by the bank, whose license allows it to accept deposits but forbids lending.