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NEW DELHI: The Enforcement Directorate may examine charges of KYC-related lapses by Paytm Payments Bank that were shared by the Reserve Bank of India a few months ago.
Following multiple violations — including use of same PAN on multiple occasions, absence of KYC and allowing transfers via pre-payment instruments without proper verification — over the past few years, RBI has decided to bar the payments bank from accepting fresh deposits from March as the management refused to correct the problems despite discussions over the last two years. Separately, it has referred the issue to Enforcement Directorate, sources added.
“If there are any fresh charges of money laundering against Paytm by the RBI, those will be investigated by the Directorate of Enforcement as per the law of the land,” revenue secretary Sanjay Malhotra told a news agency on Saturday. On its part, Enforcement Directorate, if it decides to take up the case, will conduct its own investigation to see if there were lapses.
Meanwhile, Paytm Payments Bank has maintained that the RBI direction, issued on January 31, “is a part of the ongoing supervisory engagement and compliance process” and it has complied with supervisory instructions.
Among other charges, RBI has alleged that the entity submitted fake compliance reports to supervisors and external auditors.
Following multiple violations — including use of same PAN on multiple occasions, absence of KYC and allowing transfers via pre-payment instruments without proper verification — over the past few years, RBI has decided to bar the payments bank from accepting fresh deposits from March as the management refused to correct the problems despite discussions over the last two years. Separately, it has referred the issue to Enforcement Directorate, sources added.
“If there are any fresh charges of money laundering against Paytm by the RBI, those will be investigated by the Directorate of Enforcement as per the law of the land,” revenue secretary Sanjay Malhotra told a news agency on Saturday. On its part, Enforcement Directorate, if it decides to take up the case, will conduct its own investigation to see if there were lapses.
Meanwhile, Paytm Payments Bank has maintained that the RBI direction, issued on January 31, “is a part of the ongoing supervisory engagement and compliance process” and it has complied with supervisory instructions.
Among other charges, RBI has alleged that the entity submitted fake compliance reports to supervisors and external auditors.
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