Congress spokesperson Supriya Shrinate has raised questions about the Enforcement Directorate’s (ED) inaction against Paytm Payments Bank, a subsidiary of fintech firm Paytm, despite negative observations by the Reserve Bank of India (RBI). Shrinate highlighted the long-standing association between the founder of Paytm Payments Bank, Vijay Shekhar Sharma, and Prime Minister Narendra Modi, questioning the ED’s silence on the matter.
“What is the Centre’s stand on the issue? Why did the Paytm Payments Bank get a long rope for the past seven years? The founder of Paytm Payments Bank is a bhakt of PM (Narendra) Modi, gets selfies with him and publishes ads in the PM’s favour,” said Shrinate in a statement to news agency ANI.
She further raised concerns about the ED’s inaction despite serious charges by the RBI against Paytm Payments Bank. The RBI has reportedly restricted the bank, and it is anticipated that the operating license might be cancelled as early as next month. Shrinate questioned the silence of investigative agencies when allegations are leveled against associates of PM Modi.
“The RBI has restricted Paytm Payments Bank, and there will be no existence of it after February 29…There are very serious charges leveled by the RBI. The irregularities started in 2017…Why is the CBI silent when the RBI talks about money laundering in this case?” questioned Shrinate.
The regulatory filing by Paytm clarified that neither the parent company One97 Communications nor its founder Vijay Shekhar Sharma is facing an ED probe. Paytm emphasized its compliance with Indian laws and cooperation with authorities during past inquiries.
“We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness,” stated Paytm in the regulatory filing.
Meanwhile, a Bloomberg report has suggested that the RBI is contemplating the cancellation of Paytm Payments Bank’s operating license. The potential action comes after the February 29 deadline, beyond which the Paytm subsidiary cannot accept new deposits. The reported violations include the alleged misuse of customer documentation rules and non-disclosure of material transactions.
As the regulatory scrutiny intensifies, Paytm finds itself at the center of a growing controversy, with political and financial implications. The ED’s response to the concerns raised by the Congress and the RBI’s potential actions will likely determine the future course of events for Paytm Payments Bank.
