The Financial Intelligence Unit (FIU) has imposed a penalty of more than Rs 5 crore on the banking unit of payment services company Paytm, which is facing difficulties. The reason for this is the violations in reporting illegal amounts sent through Paytm Payments Bank accounts.
The FIU, under the Finance Ministry, has registered a case against Paytm Payments Bank after receiving information from law enforcement agencies that some entities were involved in illegal activities including online gambling and were sending the proceeds through banks. Test Had started. In this regard, the Finance Ministry has said in a statement, “The money received from illegal activities was sent by these entities through their accounts in Paytm Payments Bank.” The FIU order states that Paytm Payments Bank did not report suspicious transactions and due diligence of these accounts was not done.
Earlier, Paytm had said that it has received notices from authorities including the Enforcement Directorate to provide information and clarification. Reserve Bank of India (RBI) has ordered the closure of this unit of Paytm. This decision was taken due to apprehensions regarding compliance. After this order of RBI Paytm There was a huge fall in the shares. According to a Reuters report, One 97 Communications, which runs Paytm, and its banking unit have mutually agreed to terminate various inter-company agreements. However, it has not been stated which agreements have been terminated.
A source with knowledge of the company’s strategy said, “As per the agreement, Paytm and Paytm Payments Bank will not do related party transactions.” Paytm did not respond to an email sent by Reuters seeking comment. Paytm CEO, Vijay Shekhar Sharma holds 51 percent stake in Paytm Payments Bank. Paytm holds the remaining stake. Last week, Sharma had resigned as non-executive chairman and board member of the payments bank unit. RBI has asked Paytm Payments Bank to close its operations by March 15.
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