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Indian central bank defends ‘proportionate’ action on Paytm


India's central bank said Thursday it takes supervisory actions and imposes business restrictions only after "persistent non-compliance" with rules, its India's central bank takes supervisory actions and imposes business restrictions only after "persistent non-compliance" with rules, it said Thursday.

India’s central bank said Thursday it takes supervisory actions and imposes business restrictions only after “persistent non-compliance” with rules, its first comment after a clampdown on Paytm last week has posed existential questions about the future of the leading financial services firm. A group of founders in India recently wrote to the the regulator as well as the Ministry of Finance, cautioning that the central bank’s action can impede innovation. Das said Thursday that the Reserve Bank of India will always “encourage and support innovation and technology in the financial sector.”

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