MUMBAI: Entrepreneurs and companies, irrespective of their reach and scale, cannot deny the fact that certain rules and laws need to be complied with, union minister of state for electronics & technology Rajeev Chandrasekhar said on Monday.
He added that govt maintains an open and consultative approach to regulations and the idea is not to play “rule maker”.”Entrepreneurs begin to trespass because the momentum of entrepreneurship takes them beyond what the regulators have allowed them to do at that particular point in time… even if you are a hard charging, successful, innovative entrepreneur, you cannot live in denial of the reality that there are rules and laws that have to be complied with. And that applies to big companies, small companies, startups, legacy…,” Chandrasekhar said at the Mumbai Tech Week.
His comments come amid RBI’s move to curb operations of Paytm Payments Bank due to “persistent non-compliance”. RBI found lakhs of instances of alleged KYC violations by PPBL, raising concerns of money laundering along with the lender’s inability to maintain an arm’s length relationship with its parent, resulting in the regulator putting severe restrictions on it, TOI had reported.
“A financial regulator will always look at harms like money laundering, KYC, the need to identify every transaction… and it will always view the financial sector through keeping it safe, trusted,” Chandrasekhar said.
He added that govt maintains an open and consultative approach to regulations and the idea is not to play “rule maker”.”Entrepreneurs begin to trespass because the momentum of entrepreneurship takes them beyond what the regulators have allowed them to do at that particular point in time… even if you are a hard charging, successful, innovative entrepreneur, you cannot live in denial of the reality that there are rules and laws that have to be complied with. And that applies to big companies, small companies, startups, legacy…,” Chandrasekhar said at the Mumbai Tech Week.
His comments come amid RBI’s move to curb operations of Paytm Payments Bank due to “persistent non-compliance”. RBI found lakhs of instances of alleged KYC violations by PPBL, raising concerns of money laundering along with the lender’s inability to maintain an arm’s length relationship with its parent, resulting in the regulator putting severe restrictions on it, TOI had reported.
“A financial regulator will always look at harms like money laundering, KYC, the need to identify every transaction… and it will always view the financial sector through keeping it safe, trusted,” Chandrasekhar said.