In the midst of the unfolding situation at Paytm, the Reserve Bank of India (RBI) has reportedly requested the Directorate of Enforcement (ED) to examine potential breaches at the fintech giant’s banking arm, Paytm Payments Bank.
Preliminary Inquiry Initiated
As of Monday, the ED has commenced a preliminary inquiry into the operations of Paytm. However, no enforcement case information report has been filed yet, according to a report by Mint.
Sole Agencies Investigating
Currently, the RBI and the ED are the primary agencies investigating the matter. If additional assistance is required from other agencies, the RBI has the authority to seek it. However, the government will not interfere in this process.
Commitment to Cooperation
In response to the investigation, Paytm reiterated its commitment to cooperating with regulatory authorities and providing necessary information regarding One97 Communications Ltd and its associate, Paytm Payments Bank.
Regulatory Actions and Response
Following RBI’s decision on January 31 to restrict certain operations of Paytm Payments Bank due to persistent non-compliances, the central bank’s governor, Shaktikanta Das, emphasized that there is limited scope for reviewing such actions.
Market Response
In response to recent developments, Paytm shares experienced a significant decline, reaching a fresh record low during early trading hours on Wednesday. Macquarie downgraded One97 Communications’ rating and revised its price target downwards, reflecting a bearish sentiment towards the stock.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://timesnext.com/investigation-launched-paytm-payments-bank-over-alleged-breaches/
