Paytm said Sunday that neither the business nor One97 CEO Vijay Shekhar Sharma is under investigation for money laundering by the enforcement directorate.
The Reserve Bank of India (RBI) suspected money laundering from the creation of many bank accounts without sufficient identity.
“Neither the company nor its founder and CEO are under Enforcement Directorate money laundering investigation. We have always cooperated with authorities when merchants and users on our platforms were investigated. We cooperated with authorities on past merchant and user investigations “The company claimed in an exchange filing.
To clarify, we deny anti-money laundering involvement. The company emphasized that it will follow Indian laws and take regulatory instructions seriously.
The central bank has ordered Paytm Payments Bank Ltd. (PPBL) to stop accepting new deposits, credit transactions, and top-ups for customer accounts, prepaid instruments, wallets, and road toll cards after February 29.
Customers can use wallet funds for services until February 31 with their current deposits. Top-ups and transactions using Paytm will be discontinued if the RBI maintains its stand.
Conclusion
Paytm and One97 CEO Vijay Shekhar Sharma are not under Enforcement Directorate money laundering investigation. Creating many accounts without identity worried the Reserve Bank of India. Paytm cooperated with authorities on earlier inquiries and denies anti-money laundering involvement. After February 29, the central bank ordered Paytm Payments Bank Ltd. to close. Through February, customers can access their wallet deposits and funds.
