India’s monetary crime combating company mentioned on Monday its investigation revealed that fee providers supplier Paytm and its items had violated the nation’s Overseas Change Administration Act to the tune of Rs. 6.11 billion ($70 million).
The Enforcement Directorate (ED) mentioned that Paytm had made a overseas funding in Singapore and didn’t file the required reporting to the Reserve Financial institution of India (RBI).
Paytm had additionally obtained overseas direct funding from abroad buyers with out following correct pricing tips stipulated by RBI, the ED mentioned.
Paytm’s unit, Little Web, had additionally obtained overseas direct funding with out following the pricing tips stipulated by the RBI, whereas one other unit, Nearbuy India, didn’t report the overseas direct funding throughout the stipulated timeframe, the company mentioned.
“We’re working in direction of resolving the matter in accordance with relevant legal guidelines and regulatory processes,” a Paytm spokesperson mentioned.
On Saturday, Paytm mentioned the ED discover has no affect on its providers to its customers and retailers.
The ED discover and allegations come because the fintech firm awaits a license for fee aggregation from the RBI to simply accept and disburse funds on-line.
In January 2024, the RBI had ordered Paytm’s unit Paytm Funds Financial institution to cease accepting new deposits in its accounts or digital wallets, citing supervisory issues and chronic non-compliance with guidelines.
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