Paytm: According to two sources, India’s financial crime-fighting agency is requesting information on overseas transactions from Paytm Payments Bank, a subsidiary of One 97 Communications, one of the country’s largest payment operators. Earlier this month, Reuters reported that the Enforcement Directorate had initiated an investigation into One 97 Communications, commonly known as Paytm, over suspicions of violating foreign exchange regulations. The company had firmly refuted any accusations of forex violations.
At the time of reporting, both Paytm and the Enforcement Directorate had not promptly responded to requests from Reuters seeking comment.
“This constitutes an initial assessment,” remarked one of the government insiders based in New Delhi.
The investigating agency’s initial step involved seeking additional information from the Reserve Bank of India. Following this, the RBI issued a directive to Paytm Payments Bank, instructing it to gradually reduce a substantial portion of its operations by February 29. This action was taken due to ongoing and significant supervisory concerns.
Following the central bank’s directive, Paytm has experienced a sharp decline in its market value, with a staggering loss of nearly 55%. On Wednesday alone, the company’s shares plummeted by almost 10%, reflecting investor concerns. This downturn underscores the impact of regulatory actions on the fintech giant’s financial standing and investor confidence.
