According to a report by it was discovered that hundreds of thousands of Paytm Payments Bank accounts had been opened without the required documentation. The Enforcement Directorate and other governmental organizations have been notified by the Reserve Bank of India about the anomalies in Paytm Payments Bank accounts.
Thousands of incorrectly generated ‘Paytm Payments Bank’ accounts: Report
There have been cases when the entire transaction value in minimal KYC pre-paid instruments has exceeded regulatory limitations by crores of rupees, raising worries about money laundering.
An investigation published in the Economic Times revealed that a single Permanent Account Number (PAN) was connected to an account that was running over 1,000 wallets in one case.
Significant anomalies in the KYC put the clients, depositors, and wallet owners at grave danger. Sanjay Malhotra, the revenue secretary, had told Reuters that in the event that any proof of unlawful behaviour is discovered, the ED will look into Paytm Payments Bank.
Both Paytm Payments Bank and One 97 Communications Ltd. uphold the highest moral standards in their operations. According to a Paytm Payments Bank representative, “We can confirm that neither we nor OCL’s founder-CEO have been the subject of an investigation regarding money laundering by the Enforcement Directorate.
RBI’s crackdown on Paytm
This week, the Reserve Bank of India took a significant step against PPBL when it ordered the lender to cease taking deposits or top-ups in consumer accounts, wallets, FASTags, and other instruments after February 29.
The exposure of clients to significant risk due to Paytm Payments Bank’s KYC problems resulted in a rapid decline in One97 Communications Ltd shares. As directed by the RBI, One97 Communications Ltd.’s shares—which hold the Paytm brand—saw a steep decline of 36% from.
Vijay Shekhar Sharma, the CEO and creator of Paytm, also shared a message on the app’s operation and expressed gratitude for the support the business is receiving.
“To each and every Paytmer, Your preferred app is operational and will continue to function normally after February 29. I applaud you on behalf of the whole Paytm team for your unwavering support. There is always a solution to a problem, and we genuinely want to serve our country to the best of our abilities. With PaytmKaro as its greatest supporter, India will continue to win international awards for payment innovation and inclusion in financial services,” he wrote on X on February 2.
