Last Updated: February 14, 2024, 15:56 IST
RBI not too long ago mentioned that the regulatory motion is towards Paytm Payment Bank and Paytm App won’t be impacted by it. (Representative picture)
Paytm is underneath scanner for alleged violation of FEMA- Foreign Exchange Management Act and misuse of Paytm Payment Bank.
The Enforcement Directorate has begun an enquiry towards Paytm. Finance Ministry officers informed CNN-News18 that RBI had despatched a reference to ED, publish which an enquiry has been initiated.
In the most recent improvement, CNN-News18 discovered that ED has sought paperwork on Paytm from RBI and a call on whether or not an ECIR might be registered will likely be taken after the scrutiny.
RBI Wrote To ED In November
Sources mentioned RBI wrote to ED first in November 2023 after crimson flags concerning the begin-up had been raised with the central financial institution. Since then, the company has requested RBI a minimum of twice for papers associated to Paytm Payments Bank. The scrutiny of the paperwork may very well be accomplished quickly, officers indicated.
Also Read: Paytm Chronicle Continues: From FAQs to RBI’s Firm Stand, What We Know So Far
Earlier, One97 Communications, the father or mother arm of funds options agency Paytm, on February 4 clarified that the corporate or its associated entities aren’t going through any investigation from the ED.
RBI on January 31 accused Paytm of ‘persistent non-compliances’ and barred Paytm Payments Bank from taking deposits, credit, or processing prime-up transactions in its buyer accounts.
The financial institution has additionally been barred from processing different banking companies like UPI services and funds transfers from February 29.
Paytm is underneath scanner for alleged violation of the FEMA- Foreign Exchange Management Act and misuse of Paytm Payment Bank.
