ED starts probe on Paytm, action is being taken in money laundering case

The ongoing crisis at Paytm shows no sign of ending. The Reserve Bank of India (RBI) has reportedly asked the Enforcement Directorate to investigate suspected violations at Paytm's banking unit Paytm Payments Bank. The ED has started a preliminary inquiry into the company's operations. No official statement has yet come out in this whole matter. At present only ED and RBI are investigating the matter. If additional help is required from other agencies it will certainly be sought. There will be no government interference in this entire process.

Actions taken in the interest of consumers

In a report, an official said on condition of anonymity that the RBI has taken this decision in the interest of the customer. ED has also sought documents on Paytm from RBI. Besides, the entire matter is being thoroughly investigated. The official said in the report that there is a mechanism to share information between regulators and the information (on Paytm Payments Bank) has already been shared and various agencies are probing them.

Services will be banned from February 29

Paytm said the company is cooperating with regulatory authorities. One97 Communications Limited and its associates will leave no stone unturned to provide information about Paytm Payments Bank. Paytm said we may be asked to provide information and clarifications by several regulators and law enforcement authorities, including the ED. RBI has banned Paytm Payments Bank. This order will be effective from February 29. There is also a wallet and UPI under Paytm Payments Bank. Clouds of crisis are looming over the company's UPI service.

The stock fell again by 10 percent

The RBI said the central bank has given one month's time to Paytm Payments Bank so that customers do not face any inconvenience. Shares of Paytm fell once again by nearly 10% during early trading hours on Wednesday (February 14) on the BSE at Rs. A new record low of 342.4 was reached.

Macquarie downgraded One97 Communications from a previous 'neutral' rating. 'underperformed' and cut its price. Target (PT) Rs. 650 to Rs. 275. The brokerage's current target suggests a downside of 27.7% by the stock's final close.