Paytm Payments Bank opened many accounts on 1 PAN, due to these reasons RBI took action

New Delhi (Uttam Hindu News): Paytm RBI’s action on Payments Bank is being discussed everywhere. After the action of RBI, there has been a big fall in the shares of Paytm. The company’s shares have fallen 40 percent in just two days. Meanwhile, the reason behind Reserve Bank of India (RBI) taking action on Paytm Payments Bank has come to light. According to sources, RBI had to crack down on the entities run by Vijay Shekhar Sharma due to money laundering concerns and suspicious transactions worth hundreds of crores of rupees between wallet Paytm and its banking arm. Sources said Paytm Payments Bank Ltd (PPBL) had millions of non-KYC (Know Your Customer) compliant accounts and in thousands of cases the same PAN was used to open multiple accounts. That means 1000 bank accounts were opened on 1 PAN.

Paytm Payments Bank opened many accounts on 1 PAN, due to these reasons RBI took action : RBI had directed Paytm Payments Bank Limited not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. According to the information, after February 29, RBI can cancel the license of Paytm Payments Bank. Giving information about this in a statement, RBI said that this step has been taken after the comprehensive system audit report and compliance verification report of external auditors. These reports raised concerns regarding persistent non-compliance with regulations and material supervision at the payments bank.

RBI had earlier on March 11, 2022, barred PPBL from adding new customers with immediate effect. RBI said that Paytm Payments Bank customers will be allowed to withdraw or utilize the balance from their accounts including savings bank accounts, current accounts, prepaid medium, Fastag, National Common Mobility Card (NCMC) without any restriction. One97 Communications holds 49 per cent stake in Paytm Payments Bank Ltd but classifies it as its associate and not a subsidiary. Sources said Paytm Payments Bank Ltd (PPBL) had millions of non-KYC (Know Your Customer) compliant accounts and in thousands of cases the same PAN was used to open multiple accounts.

Sources said there are instances where the total value of transactions runs into crores of rupees, raising concerns of money laundering. According to an analyst, Paytm Payments Bank has about 35 crore e-wallets. Of these, about 31 crore are inactive, while only about four crore will be active with no balance or very low balance. Sources said an unusually large number of inactive accounts are suspected to be being used for fake accounts. In such a situation, there have been major irregularities in KYC, due to which customers, depositors and wallet holders had to face serious risks. Sources said the compliance submitted by the bank was found incomplete and incorrect on several occasions.