Paytm Payments Bank has denied Fema violation as it lacks licence for foreign remittances, said sources to ET. ED has written to RBI. The federal agency recently obtained the "additional" data requested from RBI regarding entities allegedly involved in Fema violations through Paytm Payments bank. However, upon reviewing the data provided by the RBI, the agency has not found any apparent Fema violations by Paytm Payments Bank, according to the sources.
Few months ago, the RBI had alerted the Directorate of Enforcement of about possible money laundering and know-your-customer (KYC) violations at Paytm. Now, Paytm might be staring at losing its payments bank licence.