Paytm Payments Bank Update: Difficulties for fintech company Paytm are going to increase in the coming days. The Enforcement Directorate, the agency investigating the financial crisis in the country, is investigating the platforms operated by One 97 Communications, which also includes Paytm. ED is finding out whether the rules of foreign exchange have been ignored in this entire matter.
Reuters, quoting two senior government sources, has given information about the investigation by the Enforcement Directorate. However, these sources did not tell under which provision of FEMA (Foreign Exchange Management Act) the Enforcement Directorate is investigating. A source said that the investigators have not yet contacted Paytm. The sources declined to disclose their names as they are not authorized to speak to the media. The Enforcement Directorate and the Finance Ministry have refused to say anything in this matter. At the same time, Paytm spokesperson has completely rejected the allegations of violation of FEMA law and has also termed it as wrong.
Paytm spokesperson said, it is not possible to make any overseas remittance from bank accounts or wallets through Paytm Payments Bank. “We vehemently deny rumors of any FEMA law violation by One 97 Communications or its associate Paytm Payments Bank,” a company spokesperson said in an email. According to the licensing rules of Payments Bank, making remittances outside the country is prohibited and this can be done only by big commercial banks in India.
On January 31, 2024, RBI took major action against Paytm Payments Bank and banned the addition of new customers. Paytm is accused of committing irregularities regarding banking regulation, after which RBI has taken this action. After this decision of RBI, after February 29, 2024, no customer will be able to deposit money nor do credit transactions in Paytm wallet. Also you will be able to top up Paytm wallet. The balance amount remaining in the customer’s wallet can be used till it is exhausted. Customers will have the freedom to withdraw and use money. There is no fixed time limit for this. In its order, RBI has ordered Paytm to settle all the transactions and nodal accounts lying in the pipeline by March 15, 2024.
After this action of RBI, Paytm’s stock is witnessing a huge decline in the last three trading sessions. Last week the stock fell 20-20 percent for two consecutive days. Whereas on Monday, February 5, a 10 percent decline was seen in the stock. The stock has reached its historical low of Rs 438.50. Whereas the stock has fallen by about 43 percent in three sessions.
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