Learn more about the recent penalty imposed by the Financial Intelligence Unit on Paytm Payments Bank, amounting to over Rs. 5 Crore. Get the latest updates on this significant development in the financial sector.
#Paytm #PaytmPaymentBanks #PaytmPenalty #PaytmFine #PaytmClose #FIU #FinancialIntelligenceUnit #FinanceNews #Oneindia
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#Paytm #PaytmPaymentBanks #PaytmPenalty #PaytmFine #PaytmClose #FIU #FinancialIntelligenceUnit #FinanceNews #Oneindia
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NewsTranscript
00:00 In a significant development, India's Financial Intelligence Unit, FIU has imposed a penalty
00:07 of more than Rs 5 crore on Paytm's banking arm Paytm Payments Bank.
00:12 The penalty stems from violations related to reporting illegal money routed through
00:17 its accounts, as disclosed by the country's finance ministry.
00:21 The FIU launched a review of Paytm Payments Bank following information from law enforcement
00:27 agencies regarding entities involved in unlawful activities such as organising and facilitating
00:34 online gambling and utilising the bank to channel proceeds.
00:39 The Payments Bank failed to report suspicious transactions and conduct due diligence on
00:43 these accounts, according to the FIU's order.
00:46 The finance ministry stated that the penalty was imposed based on substantial evidence
00:51 found during the review process.
00:53 However, a spokesperson for Paytm Payments Bank clarified that the issues leading to
00:57 the penalty pertain to a business segment discontinued two years ago.
01:03 The company had since strengthened its monitoring systems and reporting mechanisms to the FIU.
01:09 This development comes in the wake of the Reserve Bank of India (RBI) instructing Paytm
01:13 Payments Bank to wind down operations by March 15 due to persistent compliance issues and
01:19 supervisory concerns.
01:21 In efforts to address compliance concerns, Paytm had served some ties with its Payments
01:26 Bank unit, aiming to regain investor confidence following a recent downturn in its share.
01:32 Paytm CEO Vijay Shekhar Sharma holds a majority stake in Paytm Payments Bank, while Paytm
01:37 owns the remainder.
01:39 In a separate move, Sharma recently stepped down as non-executive chairman and board member
01:44 of the Payments Bank unit, signalling a significant restructuring within the company.
01:50 This is a major step forward for Paytm Payments Bank.
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