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Paytm Under Regulatory Scrutiny: A Thousand Accounts Linked to Single PAN Card, Potential ED Investigation

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Paytm Payments Bank may be in big trouble after RBI ban on Paytm’s banking services. Agencies can investigate money laundering against it. Sources claim that Paytm Payments Bank had lakhs of accounts in which KYC (Know Your Customer) was not done. Accounts of more than a thousand users were running on the same PAN card.

Sources say that suspicious transactions worth hundreds of crores of rupees have been detected in Paytm Payments Bank through these accounts. RBI has tightened the noose on this basis. Revenue Secretary Sanjay Malhotra says, there is a possibility of money laundering in Paytm Payments Bank. If any new allegations of misappropriation of funds come to light, the Enforcement Directorate will investigate against the company.

RBI had banned Paytm from opening any new account and wallet from June 20, 2018. However, the ban was lifted in December, 2018. Even after this, information about irregularities in the company continued to come. Investigations by both RBI and auditors found that the rules were not being followed. KYC is not updated in lakhs of accounts.

Paytm will work, but not bank

All the restrictions of RBI are on Paytm Payments Bank. Therefore, Paytm (Paytm QR, Insurance, Loan Disbursement, Soundbox and Card Machine etc.) will not be affected. All the businesses connected with Payments Bank will be affected.

Merchants should use other payment apps

Praveen Khandelwal, national general secretary of Confederation of All India Traders, said, to avoid financial problems, it would be better if merchants use other payment platforms instead of Paytm for transactions. Paytm shares fell 40% in two days.

Due to this, the capital of the company has reduced by Rs 17,378 crore to Rs 30,931 crore. On the other hand, SEBI has reduced the circuit of 20% to 10%.

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