Paytm Payments Bank Crisis: Finance Minister To Meet Fintech Startups Next Week

Finance Minister Nirmala Sitharaman will meet fintech startups next week amid rising regulatory concerns after the Reserve Bank of India imposed curbs on Paytm Payments Bank via a notice on Jan. 31.

The Department of Financial Services will conduct this meeting with fintech startups in Delhi either on Monday or Tuesday, people close to the developments told NDTV Profit.

The idea of this meeting is to address the importance of regulatory compliance to these entities, the people said.

NDTV Profit previously reported that on Feb. 6, Vijay Shekhar Sharma, founder and chief executive of the beleaguered Paytm met Nirmala Sitharaman in Delhi, seeking help.

Sharma sought support from the Finance Ministry after RBI's clampdown but was asked to deal with the regulator directly.

RBI, on Friday, also extended the deadline for Paytm Payments Bank restrictions to March 15, instead of the previous Feb. 29.

While the regulator gave this time in the interest of customers and merchants, it advised, via FAQs to shift most transactions from Paytm Payments Bank.