Under ED’s scrutiny, agency requests RBI documents for an investigation

An investigation against Paytm has been started by the Enforcement Directorate. Officials from the Finance Ministry informed CNN-News18 that the RBI had sent a case to the ED, after which an investigation had been opened.

According to the most recent development, CNN-News18 has gathered that the ED has requested Paytm documentation from the RBI, and a decision about the registration of an ECIR would be made after examination.

Prior to this, One97 Communications—the parent company of payments solutions provider Paytm—explained on February 4 that the ED is not conducting an inquiry against the company or any of its affiliated companies.

Paytm Payments Bank was prohibited by RBI on January 31 from accepting deposits, credits, or top-up transactions in its client accounts due to alleged “persistent non-compliance.”

As of February 29, the bank is also not permitted to handle financial transfers or other banking services like UPI capabilities.

Paytm is being investigated for possible abuse of the Paytm Payment Bank and violations of the Foreign Exchange Management Act (FEMA).