The Reserve Bank of India may issue a clarification on the ongoing Paytm crisis considering the fintech firm’s massive user base, Economic Times reported. Financial services secretary Vivek Joshi told the website that the Reserve Bank of India (RBI) had imposed curbs in the interest of consumer protection.
Joshi said that the company did not comply with the regulator’s requirements. He added that the companies will have to abide by all the compliance and follow the laws of the land.
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ED, FIU ask RBI for report on Paytm curbs
The financial services secretary’s remark comes a day after the Enforcement Directorate and Financial Intelligence Unit asked the RBI to share its report on the recent action against Paytm Payments Bank.
According to a PTI report, both ED and FIU are already probing matters related to the payment gateway under provisions of anti-money laundering law. On the other hand, Paytm has maintained that neither the company nor its founder are facing probe by the central agencies for money laundering.
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“Categorically deny any investigation by the Enforcement Directorate on OCL, our associates, and/or its Founder and CEO for anti-money laundering activities Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding, inter alia, money laundering,” the company has said in a statement.
On Tuesday, Paytm CEO Vijay Shekhar Sharma held meetings with Reserve Bank of India and finance minister Nirmala Sitharaman on the current crisis faced by his company.
According to a Reuters report, Sharma and few Paytm officials met the RBI for discussions on roadmap to address regulatory concerns. The meeting took place at a time when the company has sought extension of the February 29 deadline. The fintech firm has been seking clarity from the central bank on the transfer of the license for the wallets business and digital highway toll payment service FASTag.
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