Finance Ministry to meet fintech start-ups amid Paytm crisis
The Finance Ministry is gearing up for a crucial meeting with fintech start-ups next week, in light of the recent actions taken by the Reserve Bank of India (RBI) against Paytm. The government's goal is to create a supportive atmosphere for innovation in the fintech and banking sectors, while stressing the importance of following regulatory guidelines. This meeting will offer start-ups a chance to connect with policymakers and regulatory authorities, encouraging discussions about regulatory frameworks and compliance standards.
Fintech players to be assured of safe business environment
During the meeting, fintech representatives are expected to meet with Finance Minister Nirmala Sitharaman, alongside officials from the Finance Ministry and other government departments. The Finance Ministry aims to reassure start-ups that they won't face penalties if they operate within the boundaries of the law. By fostering dialogue and cooperation, the government hopes to boost confidence within the fintech community and encourage responsible innovation in the industry.
Paytm stocks gain 5% on Vijay Shekhar Sharma's announcement
Meanwhile, the downward spiral of Paytm stocks seems to have abated for now. Today, the stocks were trading at Rs. 376.25, which is 5% higher than yesterday, maintaining the stride in the upper circuit for the second consecutive day. In the past three trading sessions, the stock has risen by 16%. The shares seem to have soared on Paytm founder Vijay Shekhar Sharma's announcement that QR codes and soundboxes will remain functional thanks to partnership with Axis Bank.
ED probe into Paytm finds no violation of foreign exchange
The Enforcement Directorate stated yesterday that it hasn't found Paytm violating the Foreign Exchange Management Act, 1999. The law curbs the illegal flow of capital from abroad into Indian markets. The probe agency is now investigating allegations of money laundering against Paytm—a suspicion raised due to the fintech using same PAN cards for multiple accounts with deposits amounting to crores. The RBI had pointed out the issues in Paytm's KYC entries upon which it directed ED to investigate.
