New Delhi: The Paytm Payments Bank has been fined Rs 5.49 crore over alleged money-laundering.
The latest setback for the fintech company comes a month after Reserved Bank of India (RBI) ordered it to stop accepting any fresh deposits in its accounts or wallets from February 29. The deadline was subsequently extended to March 15.
The Financial Intelligence Unit-India (FIU-IND) said in a statement that it reviewed Paytm Payments Bank after receiving information over alleged illegal acts like online gambling.
According to FIU-IND, some entities routed funds through Paytm Payments Bank violating provisions of Prevention of Money Laundering Act (PMLA).
“The money generated from these illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with Paytm Payments Bank Ltd,” FIU-IND said.
The hefty penalty pertains to issues in a business segment which was discontinued two years ago, according to a Paytm Payments Bank spokesperson.
“Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU),” the spokesperson said.
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