The Enforcement Directorate has begun an enquiry against Paytm. Finance Ministry officials told CNN-News18 that RBI had sent a reference to ED, post which an enquiry has been initiated.
In the latest development, CNN-News18 learned that ED has sought documents on Paytm from RBI and a decision on whether an ECIR can be registered will be taken after the scrutiny.
RBI Wrote To ED In November
Sources said RBI wrote to ED first in November 2023 after red flags about the start-up were raised with the central bank. Since then, the agency has asked RBI at least twice for papers related to Paytm Payments Bank. The scrutiny of the documents could be completed soon, officials indicated.
Also Read: Paytm Chronicle Continues: From FAQs to RBI’s Firm Stand, What We Know So Far
Earlier, One97 Communications, the parent arm of payments solutions firm Paytm, on February 4 clarified that the company or its related entities are not facing any investigation from the ED.
RBI on January 31 accused Paytm of ‘persistent non-compliances’ and barred Paytm Payments Bank from taking deposits, credits, or processing top-up transactions in its customer accounts.
The bank has also been barred from processing other banking services like UPI facilities and funds transfers from February 29.
Paytm is under scanner for alleged violation of the FEMA- Foreign Exchange Management Act and misuse of Paytm Payment Bank.
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