Paytm is on RBI radar, one thousand accounts on one PAN card, ED can investigate
RBI had banned Paytm from opening any new account and wallet from June 20, 2018. However, the ban was lifted in December 2018. Even after this, information about irregularities in the company continued to come.
After the RBI's ban on Paytm's banking services, Paytm Payments Bank could be in serious trouble. It is subject to money laundering investigations by agencies. Numerous accounts at Paytm Payments Bank allegedly lacked KYC (Know Your Customer) completion, according to sources. The same PAN card was used to access the accounts of over a thousand users.
According to sources, Paytm Payments Bank has discovered suspicious transactions totalling hundreds of crores of rupees through these accounts. Based on this, the RBI has tightened the noose. According to Revenue Secretary Sanjay Malhotra, there's a chance that Paytm Payments Bank has engaged in money laundering. Should fresh accusations of financial misappropriation surface, the Enforcement Directorate will look into the business.
RBI had banned Paytm from opening any new account and wallet from June 20, 2018. However, the ban was lifted in December 2018. Even after this, information about irregularities in the company continued to come. Investigations by both RBI and auditors found that the rules were not being followed. It is noteworthy that Paytm Payments Bank has about 35 crore e-wallets. Of these, about 31 crore are inactive. KYC is not updated in lakhs of accounts.
All of the RBI's regulations apply to Paytm Payments Bank. Paytm (including Paytm QR, Insurance, Loan Disbursement, Soundbox, and Card Machine, among others) won't be impacted as a result. This will have an impact on all businesses associated with Payments Bank.
The national general secretary of the Confederation of All India Traders, Praveen Khandelwal, stated that it would be preferable if merchants used other payment platforms for transactions rather than Paytm to prevent financial issues. In just two days, Paytm's stock dropped 40%. As a result, the company's capital has decreased to Rs 30,931 crore from Rs 17,378 crore. SEBI, however, has lowered the circuit from 20% to 10%.