However, Paytm has faced regulatory scrutiny from the Reserve Bank of India (RBI), which suspended business at Paytm Payments Bank due to noncompliance and supervisory concerns. The RBI was also concerned about potential conflicts of interest due to overlap in management between the bank and Paytm. Additionally, Paytm is under investigation for potential violations of foreign exchange rules, though the company denies these allegations. The RBI also found thousands of Paytm Payments Bank accounts created without proper identification, raising concerns about potential money laundering.
Key takeaways:
- The Indian government is reportedly close to allowing Paytm to invest in its crucial payments gateway unit, following a reduction in stake by Paytm's Chinese shareholder.
- The Reserve Bank of India had previously suspended business at Paytm Payments Bank due to 'persistent noncompliances and continued material supervisory concerns'.
- Paytm is also under investigation by India's financial crime-fighting agency for potential violations of foreign exchange rules, which the company has denied.
- The Reserve Bank of India had found thousands of Paytm Payments Bank accounts created without proper identification, raising concerns of potential money laundering, which Paytm Payments Bank has refuted.