ED interrogated Paytm officials after RBI action
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New Delhi. The Enforcement Directorate (ED), following the recent RBI action to bar Paytm Payments Bank Ltd from accepting deposits or top-up to any customer account, has questioned senior Paytm officials and collected several documents. Official sources gave this information on Thursday. According to sources, the central agency is conducting a preliminary examination of the documents before deciding to initiate a formal investigation into the alleged irregularities flagged by the RBI in the fintech company under the Foreign Exchange Management Act (FEMA).
Sources said that Paytm officials had recently submitted some documents after which some questions were asked from them. Some more information has also been sought. He said that at present no irregularities have been found. A case will be registered under this law only if any violation is found under FEMA. Sources said that the investigation related to Paytm under the Prevention of Money Laundering Act (PMLA) is already going on for some time. One97 Communications had informed the stock exchange on Wednesday that it has received notices from the Enforcement Directorate and other investigating agencies to provide information about its customers.
The company provides financial services under the Paytm brand and its banking arm Paytm Payments Bank Limited. Paytm said that the company and its subsidiary Paytm Payments Bank are providing information and documents to the officials as per their requirement. Its subsidiary Paytm Payments Bank Limited (PPBL) does not do the work of sending money out. The financial platform said, “One97 Communications Limited (OCL), its subsidiaries and associate PPBL have from time to time been receiving notices and demands for information, documents and clarifications from other departments including the ED in respect of customers… All necessary information in this regard is being given to the authorities.
The financial platform said, “One97 Communications Limited (OCL), its subsidiaries and associate PPBL have from time to time been receiving notices and demands for information, documents and clarifications from other departments including the ED in respect of customers… All necessary information in this regard is being given to the authorities.” The Reserve Bank of India (RBI) has directed Paytm’s unit Paytm Payments Bank Limited (PPBL) to accept payment in any customer account, prepaid product, wallet and Fastag after 29 February 2024. Instructions were given on January 31 not to accept deposits or top-ups. One97 Communications holds 49 per cent stake (directly and through its subsidiary) in PPBL. Company founder Vijay Shekhar Sharma holds 51 percent stake in the bank.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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