Paytm Says Company, CEO Not Under Money Laundering Probe

(Bloomberg) -- Indian fintech Paytm said Sunday the company and its founder and chief executive officer Vijay Shekhar Sharma weren’t under investigation by the country’s anti-money laundering agency.

India’s central bank found several lapses at Paytm Payments Bank Ltd. including multiple transactions beyond regulatory limits, raising money-laundering concerns, Bloomberg News reported previously.

“In the past, certain merchants/users on our platforms have been subject to enquiries and on those occasions, we have always cooperated with the authorities,” Paytm parent One 97 Communications Ltd. said in a disclosure to stock exchanges. The company has also cooperated with state agencies on such probes, it added.

Sharma owns 51% in the payments bank, which can take deposits of up to 200,000 rupees ($2,412) but isn’t allowed to lend. One 97 Communications owns the remaining stake.

The Reserve Bank of India on Jan. 31 issued an order that bars Paytm bank from taking deposits or allowing top-ups after Feb 29. The banking regulator is also considering scrapping the license of Paytm Payments Bank as early as March. 

Read: India’s RBI Is Said to Consider Canceling Paytm Bank Permit 

SoftBank Group Corp.-backed Paytm has been in the cross-hairs of the regulator for some time, with multiple warnings over the past two years about questionable dealings between its banking arm and its popular payments app. 

Read: All You Need to Know About the Surprise Suspension of Paytm Bank

After the RBI order Paytm shares tumbled by their daily limit of 20% each on Thursday and Friday, erasing $2 billion in market value.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.