The Enforcement Directorate (ED) has reportedly launched an inquiry into Paytm Payments Bank, as per sources cited by CNBC-TV18. However, ET Online has not independently verified this information. The investigative agency initially sought additional details from the Reserve Bank of India (RBI), which had directed Paytm Payments Bank to scale down a significant portion of its operations by February 29, citing serious and persistent supervisory concerns. Paytm has not officially confirmed this development. Following the RBI’s directive, Paytm’s market value has plummeted by nearly 55%, with its shares dropping by almost 10% on Wednesday.
RBI Governor Shaktikanta Das reiterated on February 12 that all decisions made by the central bank are carefully considered. His remarks were made in response to inquiries about the restrictions imposed on Paytm Payments Bank. Das addressed these concerns during the 606th meeting of the Central Board of Directors of the Reserve Bank of India held in New Delhi. When asked whether the RBI would reconsider its decision regarding Paytm Payments Bank, Das firmly stated that there would be no review of the decision. He emphasized the meticulousness of the RBI’s decision-making process, stating that the central bank takes action after thorough deliberation, whether it involves banks, payment banks, NBFCs, cooperative banks, or other entities. Das further mentioned that the RBI would release a set of frequently asked questions (FAQs) soon to address customer issues and concerns related to Paytm Payments Bank.
On February 9, the Board of One 97 Communications Limited, the parent company of Paytm, announced the formation of a Group Advisory Committee chaired by former SEBI Chairman M. Damodaran. This committee, which includes seasoned professionals like M.M. Chitale, former president of the Institute of Chartered Accountants of India (ICAI), aims to collaborate with the Board to enhance compliance and regulatory matters. In an official statement, the company expressed its commitment to driving sustainable business growth while adhering to regulatory and compliance standards.
