Paytm Payments Bank fined ₹5.49 crore for money laundering: Report
Paytm Payments Bank has been fined ₹5.49 crore for money laundering, according to a report by the finance ministry. The Financial Intelligence Unit imposed the penalty on Friday, citing violations of the Prevention of Money Laundering Act. This penalty comes as the latest setback for the bank, which was earlier barred by the Reserve Bank of India from accepting new deposits.
Also Read; 8.4% India’s GDP Growth Surpasses Expectations in Q3 FY24 (investonomic.co.in)
The finance ministry stated that illegal proceeds were funneled through Paytm Payments Bank accounts by entities involved in unlawful activities. The Financial Intelligence Unit began its investigation following information from law enforcement agencies regarding these entities and their involvement in activities like online gambling.
In response to the penalty, a spokesperson for Paytm Payments Bank explained that the issues leading to the fine occurred in a business segment that was discontinued two years ago. The bank has since improved its monitoring systems and reporting mechanisms to comply with regulations.
Also Read; 1.26 लाख करोड़ रुपये का निवेश: कैबिनेट ने सेमी कंडक्टर (investonomic.co.in)
On February 27, Vijay Shekhar Sharma resigned as part-time non-executive chairperson of Paytm Payments Bank, ahead of the March 15 deadline. The bank has reconstituted its board of directors with the appointment of new members including ex-Central Bank of India Chairman Srinivasan Sridhar and retired IAS officer Debendranath Sarangi.
Paytm Payments Bank fined ₹5.49 crore for money laundering, its is negative sentiment for Paytm Investors.
One97 Communications, the parent company of Paytm Payments Bank, confirmed the resignation of Vijay Shekhar Sharma and stated that the bank will begin the process of appointing a new Chairman.
