The troubles of One97 Communication Group do not seem to be ending. Now the Financial Intelligence Unit-India (FIU) has imposed a fine of Rs 5.49 crore on its Paytm Payments Bank for violation of anti-money laundering rules. The Finance Ministry gave this information on Friday. The FIU had received information from investigating agencies about illegal activities in relation to some units and companies associated with their business. According to Bhasha news, this involved organizing and facilitating online gambling.
Fraud came to light in the review
After receiving the complaint, FIU started review of Paytm Payments Bank. The ministry said that the accounts of these units were in Paytm Payments Bank Limited. The money received from illegal activities i.e. the proceeds of crime were sent elsewhere through the accounts of Paytm Payments Bank. The Financial Intelligence Unit-India has imposed a monetary penalty of Rs 5.49 crore on Paytm Payments Bank for violation of obligations under the Prevention of Money Laundering Act (PMLA).
RBI has imposed this ban
The FIU passed the order imposing the fine on February 15. FIU’s action follows RBI’s January 31 directive. RBI had barred Paytm Payments Bank from accepting fresh deposits or ‘top up’ its customers’ accounts from February 29. Later the date was extended to March 15. Earlier, the board of directors of One97 Communications has approved termination of inter-company agreements between the two amid the RBI action on associate unit Paytm Payments Bank.
Paytm founder Vijay Shekhar Sharma has also stepped down as part-time non-executive chairman of PPBL. Besides, the board of directors of the company has also been reorganized. Many challenges are visible for the company in the coming times.
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