NEW DELHI: Senior executives of Paytm have appeared for questioning before Enforcement Directorate in connection with alleged irregularities reported by Reserve Bank of India recently. The regulator had barred the payments bank from accepting deposits from customers after Feb 29.
The agency is conducting a preliminary enquiry based on the findings of RBI and will take a decision on registering a formal investigation depending on its findings.Sources, however, said no serious issues had come to light so far.
ED has asked Paytm executives to come again with certain documents sought by the probe team.
While a Paytm Payments Bank spokesperson did not respond to a specific query, One97, which is a shareholder in the bank, responding to a news report following a query by exchanges said, “This is to further clarify that One97 Communications Ltd, its subsidiaries and its associate, Paytm Payments Bank Ltd, have over time been receiving notices and requisition for information, documents and explanations from the authorities, including ED, with respect to customers that may have done business with the respective entities, and provided the required information, documents and explanations to the authorities. The company and its associate have continued to provide such information, documents and explanations to the authorities as is being required by them.”
On Feb 4, TOI had reported that ED may examine charges of KYC-related lapses by Paytm Payments Bank that were shared by RBI a few months ago.
RBI has so far only shared information that it thought was suspicious and prone to misuse, especially from the money laundering angle.
The issues flagged by RBI included use of the same PAN on multiple occasions, absence of KYC and allowing transfers via pre-payment instruments without proper verification over the last few years.
The agency is conducting a preliminary enquiry based on the findings of RBI and will take a decision on registering a formal investigation depending on its findings.Sources, however, said no serious issues had come to light so far.
ED has asked Paytm executives to come again with certain documents sought by the probe team.
While a Paytm Payments Bank spokesperson did not respond to a specific query, One97, which is a shareholder in the bank, responding to a news report following a query by exchanges said, “This is to further clarify that One97 Communications Ltd, its subsidiaries and its associate, Paytm Payments Bank Ltd, have over time been receiving notices and requisition for information, documents and explanations from the authorities, including ED, with respect to customers that may have done business with the respective entities, and provided the required information, documents and explanations to the authorities. The company and its associate have continued to provide such information, documents and explanations to the authorities as is being required by them.”
On Feb 4, TOI had reported that ED may examine charges of KYC-related lapses by Paytm Payments Bank that were shared by RBI a few months ago.
RBI has so far only shared information that it thought was suspicious and prone to misuse, especially from the money laundering angle.
The issues flagged by RBI included use of the same PAN on multiple occasions, absence of KYC and allowing transfers via pre-payment instruments without proper verification over the last few years.
