According to reports quoted by CNBC-TV18 on Wednesday, the Enforcement Directorate (ED) has purportedly started its investigation into Paytm Payments Bank. This action follows the decision from the Reserve Bank of India (RBI) two weeks ago, which told the banking subsidiary of Paytm to start winding down operations.
According to CNBC-TV18, which cited sources, the Enforcement Directorate (ED) opened an investigation against Paytm Payments Bank on Wednesday.
Two weeks have passed since the Reserve Bank of India (RBI) directed the banking arm of Paytm to cease operations. Paytm did not, however, formally validate the development.
Review not permitted, claims RBI
Reiterating that every decision made by the central bank is thoroughly scrutinized, RBI Governor Shaktikanta Das did so on February 12. The limits imposed on the Paytm Payments bank were the subject of the RBI Governor’s remarks. Speaking during the Reserve Bank of India’s 606th Central Board of Directors meeting, which took place in New Delhi today, was the RBI Chief.
The governor firmly said “no” when asked if the central bank will revisit the Paytm Payments Bank decision.
The RBI Governor declared, “There is no review of the decision (on Paytm Payments Bank)”.
According to Economic Times, This week, the FAQ will be made available. Please hold off until that FAQ is published and the Reserve Bank has had a chance to properly review all of its decisions. If we decide to take action against a bank, payment bank, NBFC, cooperative bank, or any other organization after several months, a year, or two, we do it after due consideration. I’m not talking about Paytm here, but generally speaking, we take the required step when we don’t see any positive change occurring. We have previously explained this. Thus, the kind of action we have chosen has been carefully considered,” RBI Governor Shaktikanta Das added.
The RBI reaffirmed that it will provide a list of frequently asked questions on Paytm Payments Banks shortly after receiving multiple inquiries and explanations on the matter.
“Leave it to the FAQ we are going to issue, I want to stress. All of the issues that consumers have will be covered in that FAQ. Making sure that clients and depositors are not inconvenienced is our top focus. For this reason, we have set a one-month deadline. We gave ourselves till February 29th to complete the action, which was completed on January 31st. Since the transition, the interests of our customers, and the depositors are always our top considerations, we have given this time. Therefore, we’ve given consumers a month to think things through and move forward with the switch if they so choose,” RBI Governor Shaktikanta Das stated, according to economic times.
A Group Advisory Committee led by former SEBI Chairman M Damodaran was established earlier on February 9 by the Board of One 97 Communications Limited, the company that runs Paytm. The committee’s purpose is to assist the Board in enhancing compliance and regulatory matters.
The company added in an official statement that the Committee consists of seasoned experts such as MM Chitale, a former president of the Institute of Chartered Accountants of India (ICAI) and a former member of the Banking Codes and Standards Board of India’s governing council who was nominated by the Reserve Bank of India.
According to the management of the company, it is dedicated to promoting sustainable corporate growth within the confines of a framework for compliance and regulations.
