Setback to Vijay Shekhar Sharma as ED to probe Paytm Payments Bank irregularities

Paytm has been facing setback since Reserve Bank of India took regulatory action against it on January 31.

Sonia Dham
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Courtesy: flickr

The Enforcement Directorate opened a preliminary investigation against Paytm Payments Bank on Wednesday, according to the sources. The Reserve Bank of India (RBI) prohibited the Paytm subsidiary from taking new deposits starting on February 29. This decision came on January 31.

The Payments Back has suffered a new blow as a result of the central agency's action, particularly because the RBI has ruled out reviewing its crackdown on the company. Meanwhile, according to RBI governor Shaktikanta Das has said that there is no review of the PPBL decision.

Reuters, last week quoted that the investigating agency will be seeking the oversees transactions details from Paytm Payments Bank. However, One97 Communications, the parent company of Paytm has denied all the allegations of foreign violations. 

The official statement from Paytm and Enforcement Directorate is yet to come. 

It is worth to be noted that since RBI’s action, the company has lost over 55% of the market value. The share fell almost 10% at 342.15 INR on Wednesday.