On Wednesday, reports of the Enforcement Directorate (ED) investigation against crisis-hit Paytm Payments Bank were revealed. Clarifying these allegations, the company said on Wednesday evening that Paytm’s parent company, One 97 Communications, has always cooperated with the authorities in the investigation. We want to clarify that Payments Bank has never done the work of sending money abroad.
Investigation Going On Against The Merchants, Not Us
The company said in an official statement that One 97 Communications and its affiliates had provided information, documents, and statements to all agencies, including the ED. Our partner companies are answering all types of questions. Paytm Payments Bank does not do outward foreign remittances. We clarified on February 5 that no investigation is being conducted against us by ED. Some time ago, an investigation was started against some merchants on our platform. Paytm is fully cooperating in this investigation. We keep giving every information to SEBI.
Paytm Shares Hit Lower Circuit Again
Earlier Wednesday morning, several media reports claimed that the ED investigation into the allegations against Paytm Payments Bank has started. After this news, Paytm shares touched the lower circuit and closed at Rs 342.15. This is its all-time low level. Paytm shares have reached a 52-week low. Shares of One97 Communications have fallen below Rs 350 for the first time on both the major stock exchanges.
RBI Refused Review
Earlier, RBI had given a blow to Paytm Payments Bank and said it would not review its decision. Along with this, the independent director of the bank, Manju Aggarwal, has also resigned from her post. Paytm was hopeful that RBI would reconsider its decision and the fintech company would get some relief.
Ban Has Been Imposed On Taking Deposits
The evening of January 31 became a nightmare for Paytm when the Reserve Bank of India ordered the closure of most of Paytm Payments Bank’s services starting February 29. Under this, RBI had directed Paytm’s unit Paytm Payments Bank Limited (PPBL) not to accept deposits or top-ups in any customer account, prepaid product, wallet, or Fastag after February 29, 2024.
