New Delhi: The Governor of Reserve Bank of India (RBI), Shaktikanta Das, said on Monday that while the central bank is supportive of the fintech sector, it is also committed to protect the interests of the customers as well as ensure financial stability. On the action taken against Paytm Payments Bank, Das said while addressing the media after RBI’s board meeting, “When a decision is taken, it is taken after much consideration and deliberation. Decisions are not taken in a casual manner. They are taken in a serious manner.”Let me be very clear that there is no review of the action taken against Paytm Payments Bank. The FAQ that will be coming soon will deal with customer interest issues.”Das said the RBI promotes and will continue to promote fintech, but customer interests and financial stability is of prime importance.”There should not be any doubt about RBI’s support for the fintech sector,” he said. Das also said that India has played a pioneering role in promoting digital public infrastructure.Prime Minister Narendra Modi has now launched the linkage of UPI with the fast payments system of Mauritius and in Sri Lanka, the RBI Governor said. Das said that Sri Lanka is the third SAARC country with which India has entered into such an arrangement regarding UPI, the others being Nepal and Bhutan. Mauritius is the first African country to agree to such an arrangement.”It is our endeavour to enter into collaborations with other countries on digital public infrastructure,” he said. Meanwhile, members of the RBI’s board congratulated Finance Minister Nirmala Sitharaman on presenting a responsible Interim Budget. The RBI Governor said when the government embarks on a path of fiscal consolidation, it means the borrowing is kept within certain limits. Lower government borrowing means that much more resources are available to meet the requirements of the private sector. Lower borrowing also aids bond yields, he said. Lower government borrowing also has a positive impact on the economy and can help control inflation, he added.”The momentum of India’s economic activity continues to be strong and that’s why we said last week that FY25 GDP growth may be 7 per cent,” he said. Das said the government has to take a call on what is a sustainable level of debt for the country. Even now, the debt-GDP ratio of advanced economies is far higher than that of developing economies, he added.
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