The Financial Intelligence Unit fined Paytm Payments Bank ₹5.49 crore on Friday for money laundering.
The ministry of finance was quoted by PTI as saying that the Financial Intelligence Unit fined Paytm Payments Bank ₹5.49 crore on Friday for money laundering. After the Reserve Bank of India prohibited the lender from accepting new deposits beginning on February 29 (later extended to March 15), this action is a further setback for the lender.
This follows One97 Communications’ announcement hours earlier that the firm’s board has terminated inter-company agreements with the lending service in an effort to reduce dependencies.
According to the finance minister, illegal groups were using bank accounts with Paytm Payments Bank to send money that they got from committing crimes.
The ministry said that the financial intelligence unit started looking into the Paytm lender after getting information from law enforcement about a few groups and their network of businesses that were doing illegal things, such as setting up and running online gambling sites.
The Financial Intelligence Unit-India (FIU-IND) has fined Paytm Payments Bank Ltd ₹5.49 crore for breaching its commitments under the Prevention of Money Laundering Act (PMLA), as stated by the ministry. The FIU issued the penalty order on February 15.
A Paytm Payments Bank representative said, “The penalty is for problems in a business segment that was shut down two years ago.” After that time, we improved the ways we keep an eye on things and report to the Financial Intelligence Unit (FIU).”
For personal reasons, Vijay Shekhar Sharma quit as part-time non-executive chairperson of Paytm Payments Bank on February 27, before the March 15 date. Its board of directors was reconstituted, and former Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal were all appointed.
“The company has also been told that Vijay Shekhar Sharma has quit the Board of Paytm Payments Bank to make room for this change.” One97 Communications said in a regulatory filing, “PPBL has told us that they will start the process of appointing a new Chairman.”