Will RBI issue clarification on Paytm curbs? Here's what top govt official said

While both ED and FIU are probing matters related to the payment gateway under anti-money laundering provisions, Paytm asserted that neither the company nor its founder faces investigation by central agencies for money laundering.

Team Asianet Newsable

First Published Feb 7, 2024, 10:44 AM IST

As the Paytm crisis unfolds, the Reserve Bank of India (RBI) is reportedly contemplating issuing a clarification, acknowledging the magnitude of the fintech giant's user base. Financial services secretary Vivek Joshi underscored that the RBI's imposed restrictions were motivated by the imperative of consumer protection, citing Paytm's failure to comply with the regulator's requirements. Joshi emphasized that companies must adhere to all compliance standards and abide by the laws of the land.

This development comes in the wake of requests from the Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) urging the RBI to share its report on the recent actions taken against Paytm Payments Bank.

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In response to the scrutiny, Paytm released a statement categorically denying any ED investigation into the company, its associates, or its Founder and CEO for anti-money laundering activities.

Despite these assertions, regulatory concerns persist, prompting Paytm CEO Vijay Shekhar Sharma to engage in discussions with the RBI and Finance Minister Nirmala Sitharaman.

The recent meeting aimed to address regulatory concerns, especially in light of Paytm's request for an extension of the February 29 deadline. The fintech company seeks clarity from the central bank regarding the transfer of licenses for its wallets business and the digital highway toll payment service, FASTag.

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Last Updated Feb 7, 2024, 10:44 AM IST