Thousands Of Accounts At Paytm Payments Bank Set Up Improperly: Report
The Reserve Bank of India (RBI) has found hundreds of thousands of accounts at Paytm Payments Bank created without proper identification and has passed the information on to the country's financial crime-fighting agency, three sources familiar with the matter told Reuters.
The central bank is concerned that some of the accounts could have been used for money laundering, Reuters reported while citing sources.
As well as informing the Enforcement Directorate, the RBI has sent its findings to the ministry of home affairs and the prime minister's office, they added.
"One 97 Communications Ltd. and Paytm Payments Bank have never been probed by the Enforcement Directorate," a Paytm Payments Bank spokesperson said, referring to the bank's parent company, the digital payments operator popularly known as Paytm.
"Some merchants using our platforms have been the subject of investigations and we answer authorities on this same as and when asked. We strongly refute money laundering allegations and caution you against speculation," the spokesperson added.
Recently, RBI in the exercise of its powers under section 35A of the Banking Regulation Act, 1949, had directed Paytm Payments Bank (PPBL) to stop onboarding new customers with immediate effect. PPBL was the associate bank of Paytm.
Some of the most prominent features like Paytm wallet, FASTags, National Common Mobility Card (NCMC), customer accounts, prepaid instruments etc. used to function under the ambit of Paytm Payments Bank.
(With Reuters input)
