RBI Extends Deadline For Paytm Payments Bank Deposits Amid Regulatory Concerns
The Reserve Bank of India (RBI) has granted an extension to Paytm Payments Bank customers, allowing them until 15 March 2024, to make deposits and credit transactions.
This move came following the RBI's directive to cease accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after 29 February 2024.
RBI Governor Shaktikanta Das stressed on the regulator's commitment to systemic stability and protecting depositors' interests. He reiterated the importance of providing regulated entities with ample time for compliance, highlighting the RBI's responsibility as a supervisor to ensure adherence to regulatory requirements.
RBI Deputy Governor Swaminathan echoed these sentiments, noting that supervisory actions are preceded by extensive engagement and aimed at safeguarding consumer interests and financial system stability. He assured stakeholders that measures would be taken to minimize inconvenience to customers during this period of scrutiny.
In response to regulatory scrutiny, the Enforcement Directorate has initiated preliminary examinations, questioning senior Paytm executives and scrutinising documents. The agency's actions aim to determine if formal investigations under the Foreign Exchange Management Act (FEMA) are warranted.
Simultaneously, ongoing investigations under the Prevention of Money Laundering Act (PMLA) involving Paytm are underway. Paytm, in a regulatory filing, affirmed its compliance with authorities' requests for information, reiterating that its associate, Paytm Payments Bank Limited, does not engage in outward foreign remittances.
The Enforcement Directorate and the Financial Intelligence Unit have sought reports from the RBI to assess compliance with anti-money laundering regulations and analyse Paytm's adherence to reporting requirements under the PMLA.
