Is ED investigating Paytm Payments Bank amid RBI crackdown? Firm issues clarification

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The Reserve Bank of India (RBI) is currently cracking down on Paytm Payments Bank, which is an entity of Paytm’s parent company One97 Communications Ltd. Now, there are reports that the Enforcement Directorate will launch a probe against Paytm Payments Bank amid the current allegations.

Paytm Payments Bank is currently under probe by the RBI (Reuters)(REUTERS)

As reports of an ED probe against Paytm Payments Bank emerged, a spokesperson from the company clarified on the same and said that so such probe has been launched against Paytm or One97 Communications till now.

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The Paytm Payments Bank spokesperson told ANI, “One 97 Communications Ltd and Paytm Payments Bank operate with the highest ethical standards. We can confirm that neither we nor OCL’s founder-CEO have been the subject matter of investigation by the Enforcement Directorate regarding money laundering.”

“Occasionally, some merchants on our platforms have been the subject of inquiries, and we cooperate fully with authorities in such instances. We categorically deny any involvement in money laundering activities and believe fair and responsible journalism is crucial for accurate information dissemination,” the spokesperson added.

The Paytm bank spokesperson further denied all allegations and claims of money laundering, stressing on the need for responsible reporting and verified information when it comes to reporting such matters.

“We categorically deny any allegations suggesting our involvement in money laundering activities. We advocate for responsible reporting and stress the importance of relying on verified information for public dissemination,” the statement said.

Paytm Payments Bank and ED probe reports

The reports of an ED investigation being launched in the Paytm Payments Bank case emerged when Revenue Secretary Sanjay Malhotra told Reuters on Saturday that India’s financial crime fighting agency may probe Paytm Payments Bank if any fresh charges of fund siphoning are found.

“If there are any fresh charges of money laundering against Paytm by RBI, those will be investigated by Directorate of Enforcement as per the law of the land,” Malhotra told Reuters. However, no concrete investigation has been launched against the Paytm bank by ED yet, the company clarified.

The Reserve Bank of India (RBI) started its crackdown against Paytm Payments Bank after it was discovered that hundreds of thousands of its customers have not done their KYC, which is a major financial security risk and may lead to money laundering.

(With inputs from ANI)

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