ED, authorities have been sending notice, request to Paytm for info on customers: OCL

One97 Communications, which supplies monetary providers beneath the Paytm model, and its banking arm Paytm Payments Bank have been receiving notices and requests for data with respect to prospects of the respective entities, an trade submitting said on Wednesday. Paytm mentioned that its affiliate Paytm Payments Bank Limited doesn’t undertake outward international remittances.

“One 97 Communications Limited (OCL), its subsidiaries and its associate, Paytm Payments Bank Limited, have over time been receiving notices and requisition for information, documents and explanations from the Authorities, including Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents and explanations to the Authorities,” Paytm mentioned in a regulatory submitting.

Paytm mentioned that the corporate and its affiliate have continued to supply data, paperwork and explanations to the authorities as required by them.
The assertion has come amid a meltdown in Paytm shares, which tanked 10 per cent on Wednesday after media stories claimed {that a} preliminary inquiry has been launched by ED in opposition to Paytm Payments Bank for alleged FEMA violations.

Paytm shares have nosedived round 18 per cent since Tuesday to hit the all-time low of Rs 342.35.

Earlier this month, the Enforcement Directorate and the Financial Intelligence Unit requested the RBI to share its report on the latest motion taken to bar Paytm Payments Bank Ltd from accepting deposits or top-ups in buyer accounts, in keeping with sources.

The central financial institution, on January 31, directed it to cease accepting deposits or top-ups in any buyer accounts, wallets, FASTags and different devices after February 29. The Financial Intelligence Unit (FIU) has additionally sought the report from the RBI to analyse whether or not Paytm or PPBL adopted the required procedures as a “reporting entity” beneath part 13 of the PMLA.

Under this part of the anti-money laundering legislation, a monetary establishment, financial institution or middleman has to furnish particulars to the FIU about sustaining data of all transactions and paperwork evidencing id of its shoppers and helpful house owners in addition to account recordsdata and business correspondence regarding its shoppers.