The Enforcement Directorate will probe Paytm Payments Bank if any evidence of illegal activity is found, Revenue Secretary Sanjay Malhotra told Reuters on Saturday.
Concerns regarding financial irregularities and questionable transactions worth hundreds of crores of rupees between financial platforms and Paytm Payments Bank, led the Reserve Bank of India (RBI) to impose restrictions on the entities operated by Vijay Shekhar Sharma. According to sources, Paytm Payments Bank Limited (PPBL) possessed millions of non-KYC (Know Your Customer) compliant accounts, and a single PAN (Permanent Account Number) was used for opening several accounts in thousands of cases. It has been indicated that such instances, where the total value of transactions runs into crores of rupees, raise concerns about money laundering.
It was found that more than 1,000 users had linked the same permanent account number (PAN) to their accounts. These findings surfaced during the verification processes conducted by both RBI and auditors. Sources mentioned that RBI is worried that some accounts could be utilized for money laundering. In addition to informing the Enforcement Directorate, RBI has also alerted its conclusions to the Finance Ministry and the Prime Minister's Office.
It was found that over 1,000 users had linked the same permanent account number (PAN) to their accounts. The RBI and auditors found these during the verification processes. Sources mentioned that RBI is worried that some accounts could be utilized for money laundering. In addition to informing the Enforcement Directorate, RBI has also alerted its conclusions to the Finance Ministry and the Prime Minister's Office.
The RBI on Wednesday ordered Paytm Payments Bank to wind down most of its businesses, including deposits, credit products and its popular wallet by February 29.
It cited "persistent non-compliances and continued material supervisory concerns in the bank", without giving details.
The Enforcement Directorate will probe Paytm Payments Bank if any evidence of illegal activity is found, Revenue Secretary Sanjay Malhotra told Reuters on Saturday.
Paytm's stock plunged 36% in the two days following the RBI's move against its bank, wiping $2 billion off its market value.
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