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.
The Reserve Bank of India has approved the migration of Paytm s UPI-based payments business from Paytm Payments Bank to other banks, including Axis Bank, to ensure compliance and business continuity. The move brings Paytm on par with other fintechs offering payment services through UPI.
The RBI said on Friday that Paytm can transfer its Unified Payments Interface-based payments business from Paytm Payments Bank to four to five other banks.
Finance Minister Nirmala Sitharaman is planning to meet the heads of fintech companies next week to discuss their concerns and challenges. However, Paytm is unlikely to be invited due to recent regulatory actions against Paytm Payments Bank. Read more.
The RBI has given the NPCI certain directives about Paytm Payment Bank Limited (PPBL) customers and asked them to consider shifting the UPI handle @paytm of Paytm s customers to four to five other banks. - Worried About Using @Paytm UPI Handle After March 15? RBI Has A Solution You Want To Know