In View Of Large User Base, RBI Likely To Issue Clarification On Paytm: Report

The financial services secretary's statement comes a day after the ED and FIU requested the RBI to provide its report on the recent measures taken against Paytm Payments Bank

Vijay Shekhar Sharma, the founder and chief executive officer of Paytm, reportedly met Union Finance Minister Nirmala Sitharaman on Tuesday

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Financial Services Secretary Vivek Joshi said that the Reserve Bank of India (RBI) might come out with clarification regarding the Paytm case, given its extensive user base. He highlighted that the banking regulator's actions were aimed at consumer protection. Joshi told The Economic Times that the company failed to adhere to the regulator's stipulations. He emphasised that companies must comply with all regulatory requirements and adhere to the laws of the country.

The financial services secretary's statement comes a day after the Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) requested the RBI to provide its report on the recent measures taken against Paytm Payments Bank.

Reports suggested that the central agencies ED and FIU are currently investigating issues concerning the payment gateway under the provisions of anti-money laundering laws. However, Paytm has consistently stated that neither the company nor its founder is under investigation by central agencies for money laundering.

"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. In the past, certain merchants/users on our platforms have been subject to inquiries, and on those occasions, we have always cooperated with the authorities. During any such investigations by the authorities on any set of merchants/users in the past, we have cooperated with them on these investigations. This has been previously disclosed to the stock exchanges,” the company has said in a statement.

Meanwhile, according to a report by news agency ANI, Vijay Shekhar Sharma, the founder and chief executive officer of Paytm, met Union Finance Minister Nirmala Sitharaman on February 6 to address the current crisis involving the company's banking arm, Paytm Payments Bank.