Regulatory oversight applies to all companies, regardless of their status as financial technology entities, said Minister for State for Electronics and Information Technology Rajeev Chandrasekhar.
Chandrasekhar's remarks come in the wake of stringent actions taken by the Reserve Bank of India against Paytm Payments Bank, citing significant breaches of regulatory standards and compliance protocols.
"Being a fintech company doesn't absolve anyone from regulatory oversight," Chandrasekhar said in New Delhi, according to an ET Now report. "[The] Regulator has an absolute authority to regulate an entity," he said.
On Jan. 31, RBI imposed major business restrictions on Paytm Payments Bank, including accepting fresh deposits and doing credit transactions after Feb. 29. Inadequate Know-Your-Customer procedures, which led to transactions worth crores of rupees, was one of the major reasons that led the regulator to impose such stringent curbs.
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