Business information: Paytm on Monday (February 5) issued a press release denying reports of an Enforcement Directorate investigation or violation of Foreign Exchange guidelines by the corporate or its affiliate Paytm Payments Bank Limited. This comes after Reuters, quoting two senior officers, claimed that the ED was probing the corporate, nevertheless, there was no formal communication to this point. Paytm’s dad or mum firm, One97 Communications Limited (OCL), claimed that the reports are “entirely misleading, baseless and malicious”.
What did the corporate say?
“The Company filed a specific clarification yesterday, categorically denying any investigation by the Enforcement Directorate on OCL, our associates and our management. 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,” Paytm stated.
“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,” it added.
What occurred thus far?
The improvement comes amid speculations over the corporate’s operations following Reserve Bank of India’s motion towards its affiliate Paytm Payments Bank. The Payments financial institution was requested to cease key operations from March 1 on account of non-compliance.
Paytm stated on Sunday stated that neither the corporate nor Vijay Shekhar Sharma, the CEO of One97, is at present underneath investigation by the enforcement directorate for cash laundering.
The Reserve Bank of India (RBI) had raised issues concerning the creation of quite a few accounts on the financial institution with out correct identification, suspecting potential cash laundering actions.
“Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding money laundering. In the past, certain merchants and users on our platforms have been subject to inquiries, and on those occasions, we have always cooperated with the authorities. During any such investigations by the authorities on any set of merchants and users in the past, we have cooperated with them on these investigations,” the corporate stated in an exchange submitting.
Paytm Payments Bank Ltd (PPBL) has been instructed by the central financial institution to stop a number of of its operations, together with accepting new deposits, participating in credit score transactions, and facilitating top-ups for buyer accounts, pay as you go devices, wallets, and playing cards used for paying street tolls, after February 29.
Customers will retain entry to their present deposits and can use the funds of their wallets for providers till the top of February. If the Reserve Bank of India (RBI) maintains its place, the power to high up Paytm wallets will likely be discontinued, and transactions via the platform will not be doable.
