Paytm Payments Bank's troubles increase, Financial Intelligence Unit imposes fine of Rs 5.49 crore

Paytm Payments Bank's troubles increase, Financial Intelligence Unit imposes fine of Rs 5.49 crore

Paytm Payments Bank: The problems of Paytm Payments Bank are not showing signs of decreasing. The Financial Intelligence Unit has imposed a fine of Rs 5.49 crore (Rupees Five Crore Forty Nine Lakh) on Paytm Payments Bank under PMLA. The Finance Ministry said that the Financial Intelligence Unit- India has decided to impose this penalty under the PMLA Act 2022."text-align: justify;">Accused of involvement in online gambling!

The Finance Ministry issued a press release giving information about the penalty imposed on Paytm Payments Bank and said that the Financial Intelligence Unit  – India (FIU-IND) has found some units and networks of Paytm Payments Bank involved in illegal activities like online gambling. Information was received regarding participation. The money received from these illegal operations was routed through bank accounts to these units of Paytm Payments Bank. 

FIU-India issued notice

After scrutiny of all the records, the Financial Intelligence Unit – India had issued a show cause notice to Paytm Payments Bank. This notice was issued in view of the violation of PML rules, violation of security of payout services related to AML CFT and KYC and AML CFT and KYC of beneficiary accounts. 

FIU-India imposed fine

According to the Finance Ministry, following the written and oral submissions of Paytm Payments Bank, the Financial Intelligence Unit – India, taking into account all the materials available on record, found that the allegations against Paytm Payments Bank were correct. After which, using the powers under Section 13 of the Anti-Money Laundering Act (PMLA), it has decided to impose a penalty of Rs 5.49 crore as per the order of March 1, 2024.  

Paytm Payments Bank gave clarification 

On the decision of Financial Intelligence Unit to impose penalty, Paytm Payments Bank spokesperson said, 'This penalty One is related to the issues of a business segment which was closed two years ago. Since then we have enhanced our monitoring systems and reporting mechanisms for the Financial Intelligence Unit.'

RBI took action first 

The troubles of Paytm Payments Bank increased from January 31, 2024 when the banking sector regulator Reserve Bank of India had decided to ban Paykai services due to ignoring the regulatory rules and non-compliance of compliance despite warnings. Earlier restrictions were imposed till 29 February, but the period was extended by RBI to 15 March 2024. Irregularities were found against Paytm Payment Bank, after which the Central Bank had issued this order.

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