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My India First

Paytm Financial institution Fined Over Rs 5 Crore For Violations Beneath Cash Laundering Act

Paytm Funds Financial institution has been fined over Rs 5 crore over cash laundering allegations

New Delhi:

Paytm Funds Financial institution has been fined Rs 5.49 crore over alleged cash laundering within the newest setback to the fintech, a month after the Reserved Financial institution of India (RBI) ordered it to cease accepting any contemporary deposits in its accounts or wallets from February 29. That deadline was prolonged to March 15.

The Monetary Intelligence Unit-India (FIU-IND) in an announcement stated it reviewed Paytm Funds Financial institution after getting info from law-enforcement businesses over alleged unlawful acts together with on-line playing.

The FIU-IND stated some entities routed these funds by way of Paytm Funds Financial institution, which violated provisions of the Prevention of Cash Laundering Act (PMLA).

“… The cash generated from these unlawful operations, i.e. proceeds of crime have been routed and channelled by way of financial institution accounts maintained by these entities with Paytm Funds Financial institution Ltd,” the FIU-IND stated.

A Paytm Funds Financial institution spokesperson stated the penalty pertains to points inside a enterprise section that was discontinued two years in the past. “Following that interval, we now have enhanced our monitoring methods and reporting mechanisms to the Monetary Intelligence Unit (FIU),” the spokesperson stated.

Following the RBI order final month, Paytm had shifted its nodal account to Axis Financial institution (by opening an escrow account) to proceed seamless service provider settlements as earlier than. It had then insisted that its QR codes, soundbox and card machines would proceed to work past the RBI’s March 15 deadline.

The deadline extension, the RBI stated, was to permit clients, together with retailers, “somewhat extra time” to make different preparations.

The RBI stated no additional deposits or credit score transactions or top-ups will probably be allowed in any buyer accounts, pay as you go devices, wallets, FASTags, Nationwide Widespread Mobility Playing cards, and so on after March 15.

Prospects can withdraw or use funds from their Paytm Funds Financial institution accounts and wallets till the time these funds are exhausted, however they can not add any contemporary funds after March 15, it added.

Paytm Funds Financial institution has almost a fifth share of India’s toll collections by way of a product referred to as FASTag. The RBI stated these FASTags can’t be recharged or topped up after March 15.

Paytm is the third-largest app for UPI funds within the nation, processing 1.6 billion month-to-month transactions, in accordance with information obtainable on the NPCI web site. PhonePe and Google Pay are the 2 largest.

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