NEW DELHI: Union Finance Minister Nirmala Sitharaman is expected to meet fintech startups next week amid regulatory concerns, after the central bank acted on Paytm (NS:PAYT) Payments Bank and put certain curbs. According to a report in NDTV (NS:NDTV) Profit on Tuesday, citing sources, the Department of Financial Services in the Ministry is likely to conduct the meeting with fintech startups in the capital early next week.
The aim of the meeting is to "address the importance of regulatory compliance to these entities".
Earlier, the Reserve Bank of India (RBI) instructed the termination of the nodal accounts of One 97 Communications Ltd (OCL) and Paytm Payment Services Ltd (PPSL), which were maintained by the PPBL.
The RBI terminated this because of "persistent non-compliances" and "continued material supervisory concerns" within the bank.
Vijay Shekhar Sharma, Founder and CEO of Paytm, had met Sitharaman in Delhi to seek help in the matter but was instructed to deal directly with the regulator.
Paytm has over 30 crore users, with around 11 crore monthly transacting users. It also has a network of around 1 crore merchants actively accepting payments. The company has reassured its users that its mobile app, including the QR code, Soundbox and Card Machine will remain operational even after March 15.