The Paytm spokesperson mentioned no abroad remittances of any form might be initiated from financial institution accounts or pockets accounts at Paytm Payments Bank. (File Image)
Paytm’s clarification got here after information company Reuters, citing two senior authorities sources, reported that India’s monetary crime-combating company is investigating if platforms run by One 97 Communications
One97 Communications Limited, often known as Paytm, on Monday denied stories of Investigation or violation of Foreign Exchange guidelines by the Company or its affiliate Paytm Payments Bank Limited.
Paytm’s clarification got here after information company Reuters, citing two senior authorities sources, reported that India’s monetary crime-combating company is investigating if platforms run by One 97 Communications.
“To address recent misinformation, factual Inaccuracies, and speculation, One97 Communications Limited (OC/Paytm / Company) would like to set out the Company’s position and directly address rumors in the recent misleading media reports about the Company. This filling is done in the Interest of transparency, and protecting our reputation, customers, shareholders, and stakeholders from being influenced by unwarranted and speculative stories. We will continue to post such clarifications, as required,” Paytm mentioned in an announcement.
The firm mentioned it filed a selected clarification yesterday, categorically denying any Investigation by the Enforcement Directorate on OCL, our associates and our administration.
Our assertion on current speculative media stories: We deny stories of investigation or violation of Foreign Exchange guidelines by Paytm or its affiliate Paytm Payments Bank Limited pic.twitter.com/c5d896O6XW— Paytm (@Paytm) February 5, 2024
“We have since seen additional media reports making baseless speculations about investigations of the Company or its associate Paytm Payments Bank Limited (PPBL) for violation of foreign exchange rules. We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation. Such media reports are entirely misleading, baseless and malicious, which harm the interests of all our stakeholders,” the assertion mentioned.
According to a Reuters report, 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.
The Enforcement Directorate has written to the central financial institution to hunt knowledge referring to transactions by Paytm’s platforms, the 2 sources mentioned.
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”.
Shares of One97 Communications Ltd fell by one other 10 per cent to hit its decrease circuit restrict, as buyers continued to dump the inventory following the RBI’s crackdown.
The inventory tanked 10 per cent to Rs 438.35 — its lowest buying and selling permissible restrict for the day — on the BSE. It plummeted 9.99 per cent to hit its decrease circuit restrict of Rs 438.50 on the NSE. In three days, the inventory has tumbled over 42 per cent, wiping out Rs 20,471.25 crore, from its market valuation.
RBI’s Action Against Paytm Payments Bank
The Reserve Bank of India on Wednesday ordered Paytm Payments Bank, an affiliate of Paytm, 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 stories, nevertheless, of a authorities investigation of attainable overseas alternate rule violations involving the platforms of the financial institution or its guardian firm.
The Paytm spokesperson mentioned no abroad remittances of any form might be initiated from financial institution 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 through 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.”
(with Reuters inputs)
