On January 31, the RBI imposed major business restrictions on Paytm Payments Bank, including accepting fresh deposits and doing credit transactions after February 29
However, the growth has also been good. So in that sense, it is going well. But it is the role of the governor to actually always caution the market that, yes, things are good, but keep watch out and we will keep watching and if warranted, we will take action. So that is the sense I got.
Last week, the Reserve Bank of India (RBI) issued a directive to Paytm Payments Bank, prohibiting it from accepting new deposits starting February 29, 2024.
The RBI needs to soften its liquidity stance if it wants the forecasts for the next fiscal year to come true. After all, GDP growth is driven by investments more than consumption at this point
The Monetary Policy Committee (MPC) noted that domestic economic activity is holding up well while large and repetitive food price shocks are interrupting the pace of disinflation. Overall, India appears well placed in terms of macrofinancial stability