Paytm Payments Bank fined Rs. 5.49 crore for money laundering
Paytm Payments Bank has been slapped with a Rs. 5.49 crore fine by the Financial Intelligence Unit-India (FIU-IND) for breaching the Prevention of Money Laundering Act (PMLA) obligations. The Ministry of Finance alleged that the bank engaged in a number of illegal activities, including organizing and facilitating online gambling. The money generated from these illegal operations was then routed and channeled through bank accounts maintained by these entities with Paytm Payments Bank Ltd, it added.
Statement by Finance Ministry
In a statement, the ministry stated, "FIU-IND initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organizing and facilitating online gambling." After considering the bank's oral and written defenses, the government found the allegations to be valid. As a result, the penalty was imposed under Section 13 of the PMLA.
Paytm bank barred from accepting new deposits
The move is a fresh blow to Paytm Payments Bank after the Reserve Bank of India (RBI) barred it from accepting new deposits from Thursday (February 29). It later extended the date to March 15. The bank cited "persistent non-compliance" and "material supervisory concerns" for the action. However, it was not immediately clear if the Finance Ministry's actions were related to the move by the RBI.
