Paytm Payments Bank may not be the only one under the RBI's attention. The central bank is reportedly considering regulating action against further fintech businesses for KYC violations.
According to a Moneycontrol study, these include a leading payments aggregator and a wallet service provider. The focus is on fintech companies that provide unsecured loans and function as mediators between customers and lenders.
On January 31, the RBI stopped Paytm Payments Bank from accepting new customers due to compliance flaws in its KYC procedure. Following the RBI move, the Enforcement Directorate reportedly questioned senior Paytm executives and requested that they submit papers.
One97 Communications, which offers financial services under the Paytm brand, and its banking affiliate Paytm Payments Bank have received notices and requests for information regarding consumers of the respective firms, according to an exchange filing by the company on Wednesday.
Paytm stated that its subsidiary Paytm Payments Bank Limited does not handle outgoing foreign remittances.
"One 97 Communications Limited (OCL), its subsidiaries, and its associate, Paytm Payments Bank Limited, have over time received notices and requisitions from the authorities, including the Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents, and explanations to the authorities," Paytm said in a regulatory filing.
