Paytm: The Paytm digital payment solutions company is still facing a dilemma. According to reports, the ED has opened a probe into the corporation in accordance with FEMA regulations. This was reported today, Tuesday. Reuters has now reported, citing sources, that Vijay Shekhar Sharma, the creator of the company, has met with officials of the Reserve Bank of India.
Paytm Explores Solutions to Tackle Regulatory Challenges
It is known that following their meeting, a path to address the company’s ongoing regulatory difficulties was discussed. Regarding this, a formal meeting was arranged, with participation from corporate officials. Forex violations are being looked into by the company. Paytm, meanwhile, has flatly denied the reports of FEMA violations.
ED Inquiry Unveiled
It was previously reported that One 97 Communications has been the target of an inquiry by the ED, which looks into economic crimes, to see whether or not the companies operating under the Paytm name broke any foreign exchange regulations. It’s unclear, though, which FEMA rule clauses are being looked at. According to official sources, the RBI has been requested by the ED to obtain data regarding transactions pertaining to Paytm’s platforms.
Paytm Payments Bank Limited Banned from Accepting Deposits and Top-Ups
Let us inform you that, as of last week, Paytm Payments Bank Limited is not permitted to take deposits or top-ups in any customer account, prepaid device, wallet, Fastag, etc. after February 29, 2024 by the Reserve Bank of India (RBI). Had come to a stop. Following the submission of the external auditors’ compliance verification report and detailed system audit report, the RBI initiated this action against Paytm Payments Bank Limited (PPBL).
Market Turbulence
The company’s shares have been steadily declining ever since. The stock dropped almost 42% in the last three sessions following the RBI’s severe measures. Its market worth dropped by Rs 20,471.25 crore as a result. One97 Communications Limited’s shares on Monday hit their lower (circuit) limit.
One97 Communications Limited (OCL) is associated with Paytm Payments Bank Limited (PPBL). One97 Communications owns a 49 percent ownership in Paytm Payments Bank Limited, both directly and through a subsidiary. CEO of One97 Communications Limited (OCL), Vijay Shekhar Sharma, owns a 51 percent share in the bank.
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