The interface of Indian funds app Paytm is seen in entrance of its brand displayed on this illustration. File
| Photo Credit: Reuters
India’s monetary crime-fighting company is investigating if platforms run by One 97 Communications, often known as Paytm, had been concerned in violations of international change guidelines, two senior Government sources mentioned.
The sources didn’t point out what particular provisions of the Foreign Exchange Management Act (FEMA), which covers particular person and company transfers abroad, had been the topic of the investigation by the Enforcement Directorate (ED). One of the sources added that the investigators weren’t but involved with Paytm.
The sources declined to be named as a result of they weren’t authorised to talk to the media.
The Enforcement Directorate and the Ministry of Finance, which oversees the company, didn’t instantly reply to requests for remark. A spokesperson for Paytm mentioned that allegations concerning FEMA violations had been “unfounded and factually incorrect”.
The Reserve Bank of India ordered Paytm Payments Bank to wind down most of its companies, together with deposits, credit score merchandise and its in style digital wallets, by Feb. 29.
There had beforehand been no studies, nonetheless, of a Government investigation of attainable international change rule violations involving the platforms of the bank or its guardian firm.
The Paytm spokesperson mentioned no abroad remittances of any form might be initiated from bank accounts or pockets accounts at Paytm Payments Bank.
“We vehemently deny any speculations on alleged FEMA violations by One 97 Communications or its associate Paytm Payments Bank,” the spokesperson mentioned by way of electronic mail. “The licence for payments banks restricts them from conducting operations related to outward remittances, which are exclusively permitted for large commercial banks in India.”
