MUMBAI: Entrepreneurs and companies, irrespective of their reach and size, cannot deny the fact that certain rules and laws need to be followed, Union Minister of State for Electronics and Technology Rajeev Chandrasekhar said on Monday.
He added that the government takes an open and consultative approach to regulations and is not about being a “rule maker”. “Entrepreneurs begin to trespass because the dynamics of entrepreneurship take them beyond what regulators have allowed them to do at that particular point in time… even if you are a tenacious, successful and innovative entrepreneur, you cannot live in denial of that. “The reality is that there are rules and laws that must be followed. And that applies to big companies, small companies, startups, legacy…,” Chandrasekhar said at Mumbai Tech Week.
His comments come amid RBI's move to restrict operations of Paytm Payments Bank due to “continued non-compliance”. As TOI reported, the RBI found numerous cases of alleged KYC violations by PPBL, raising concerns about money laundering as well as the lender's inability to maintain an arm's length relationship with its parent company, leading to the regulator imposing stringent restrictions on the company .
“A financial regulator will always look at harms like money laundering, KYC and the need to identify every transaction… and it will always look at the financial sector in a way that ensures security and trust,” Chandrasekhar said.
He added that the government takes an open and consultative approach to regulations and is not about being a “rule maker”. “Entrepreneurs begin to trespass because the dynamics of entrepreneurship take them beyond what regulators have allowed them to do at that particular point in time… even if you are a tenacious, successful and innovative entrepreneur, you cannot live in denial of that. “The reality is that there are rules and laws that must be followed. And that applies to big companies, small companies, startups, legacy…,” Chandrasekhar said at Mumbai Tech Week.
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His comments come amid RBI's move to restrict operations of Paytm Payments Bank due to “continued non-compliance”. As TOI reported, the RBI found numerous cases of alleged KYC violations by PPBL, raising concerns about money laundering as well as the lender's inability to maintain an arm's length relationship with its parent company, leading to the regulator imposing stringent restrictions on the company .
“A financial regulator will always look at harms like money laundering, KYC and the need to identify every transaction… and it will always look at the financial sector in a way that ensures security and trust,” Chandrasekhar said.
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