Case against Paytm Payments Bank by ED under FEMA violations

The Enforcement Directorate has initiated an investigation and filed a case for forex violations against Paytm Payments Bank. Also, according to two sources cited by Reuters, the Financial Intelligence Unit (FIU) and the Enforcement Department (ED) have requested an RBI report.

Due to possible violations of foreign exchange regulations, the central agency has requested information on international transactions from Paytm Payments Bank, a One 97 Communications subsidiary.

Paytm has rejected any infractions of foreign exchange regulations.

Due to ongoing supervisory concerns, the Reserve Bank of India had previously ordered Paytm Payments Bank to cease operations by February 29. Paytm has since seen a nearly 55% decline in market value. On Wednesday, the company’s shares fell by about 10%.