According to two sources, Paytm Payments Bank, a division of One 97 Communications, one of the biggest payment providers in the nation, is being asked by India's financial crime fighting agency for information on foreign transactions.
One 97 Communications, popularly known as Paytm, was the subject of an Enforcement Directorate investigation, according to Reuters earlier this month, which was based on possible violations of foreign exchange regulations. Allegations of FX violations were refuted by the firm.
Reuters's inquiries for comment were not immediately answered by Paytm or the Enforcement Directorate. According to one of the official sources in New Delhi, "This is a preliminary examination."
In response to persistent and grave supervisory concerns, the Reserve Bank of India ordered the Paytm Payments Bank to shut down a large portion of its operations by February 29. The investigating body had initially requested additional information from the RBI. Nearly 55% of Paytm's market value has been eroded since the central bank's decree. On Wednesday, the company's shares dropped by almost 10%.
