Paytm Denies Money Laundering Investigation By ED, Refutes Allegations as RBI Deadline Looms

Paytm, a leading fintech company, has strongly refuted reports suggesting an investigation by the Enforcement Directorate (ED) into alleged money laundering or FEMA violations involving the firm and its founder, Vijay Shekhar Sharma. The company dismissed the claims as “misleading, baseless, and malicious,” asserting that the ED has not initiated any probe against One97 Communications or its CEO.

This clarification follows the Reserve Bank of India’s (RBI) recent directive to Paytm Payments Bank, instructing it to halt all transactions after February 29, citing purported violations of KYC regulations and concerns about money laundering. Paytm countered these allegations, stating that neither the company nor its associated Paytm Payments Bank Limited is under investigation by the ED. The company emphasized that media reports suggesting otherwise are entirely misleading.

Also read: Paytm To Sell Wallet Business; Jio Financial Shares Surge Amidst Talks Of Acquisition

In a released statement, Paytm declared its commitment to transparency and protecting its reputation, customers, shareholders, and stakeholders from unwarranted speculation. The company vowed to continue providing clarifications as needed to address misinformation and factual inaccuracies in the media.

The RBI crackdown on Paytm Payments Bank stems from alleged breaches of KYC rules, with numerous accounts found to have faulty documentation. Additionally, concerns have been raised about multiple transactions surpassing regulatory limits, prompting worries about potential money laundering activities. Despite these challenges, Paytm maintains its adherence to RBI rules and the parameters set by the Government of India. The banking regulatory body is contemplating the cancellation of Paytm Payments Bank’s operating permit as early as March 2024.

Also read: Paytm To Sell Wallet Business; Jio Financial Shares Surge Amidst Talks Of Acquisition