In response to the RBI crackdown, Paytm clarified in a statement that neither the company nor its founder, Vijay Shekhar Sharma, is currently under investigation.
On Monday, Paytm refuted reports of the Enforcement Directorate probing the company or its founder for money laundering or FEMA violations, dismissing them as “misleading, baseless, and malicious.”
Paytm clarified that the financial crime-fighting agency has not initiated any investigation against the parent brand, One97 Communications, or its founder and CEO, Vijay Shekhar Sharma, in response to money laundering allegations.
Following the Reserve Bank of India’s deadline for Paytm Payments Bank to halt transactions after February 29, Paytm issued a statement emphasizing that neither the company nor its associate, Paytm Payments Bank Limited, is under investigation. The statement highlighted that media reports suggesting otherwise are misleading and baseless, potentially harming the interests of stakeholders. Paytm clarified that the Enforcement Directorate has not initiated any investigation against One97 Communications, its associates, or top management, and it refuted allegations of FEMA violations.
Paytm rebuffs allegations of money laundering and FEMA violations by the Enforcement Directorate, asserting that neither the company nor its founder, Vijay Shekhar Sharma, is under investigation amid the RBI’s measures. The fintech firm emphasizes that media reports suggesting otherwise are misleading and baseless, safeguarding the interests of stakeholders. Additionally, Paytm clarifies that the ED has not initiated any probe against One97 Communications, its associates, or top management, refuting claims of alleged FEMA violations.
Recently, the Reserve Bank of India mandated Paytm Payments Bank to cease all deposits or transactions post-February 29, citing purported breaches of KYC regulations and sparking apprehensions about potential money laundering.
Moreover, the banking regulatory authority is contemplating the cancellation of Paytm Payments Bank’s operating permit as early as March 2024. The RBI highlighted that the Paytm bank did not comply with the minimum KYC rules for its account holders, with numerous accounts registered using faulty documents.
Accusations have also surfaced against Paytm Payments Bank for engaging in multiple transactions exceeding regulatory limits, prompting concerns about potential money laundering. Despite these allegations, Paytm has reaffirmed its commitment to adhering to all RBI rules and parameters set by the Government of India.
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