Paytm Bank banned due to money laundering concerns, KYC non-compliance – Dainik Savera Times
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RBI had directed Paytm Payments Bank Limited not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. RBI said the step has been taken following the comprehensive system audit report and compliance verification report of external auditors.
These reports raised concerns regarding persistent non-compliance with regulations and material supervision at the payments bank. RBI had earlier on March 11, 2022, barred PPBL from adding new customers with immediate effect.
RBI said that Paytm Payments Bank customers will be allowed to withdraw or utilize the balance from their accounts including savings bank accounts, current accounts, prepaid medium, Fastag, National Common Mobility Card (NCMC) without any restriction.
49% stake in Paytm Payments Bank Ltd:
One97 Communications holds 49 per cent stake in Paytm Payments Bank Ltd, but classifies it as its associate and not a subsidiary. Sources said Paytm Payments Bank Ltd (PPBL) had millions of non-KYC (Know Your Customer) compliant accounts and in thousands of cases the same PAN was used to open multiple accounts.
Sources said there are instances where the total value of transactions runs into crores of rupees, raising concerns of money laundering. According to an analyst, Paytm Payments Bank has about 35 crore e-wallets. Of these, about 31 crore are inactive, while only about 4 crore will be active with no balance or very low balance.
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