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Shadow of KYC-led money laundering falls over Paytm Payments Bank

Payments bank says it has upheld compliance with supervisory instructions

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Photo: Bloomberg

5 min read Last Updated : Feb 03 2024 | 6:25 AM IST

Large-scale violations of know your customer (KYC) norms, leading to money laundering concerns, have prompted the Reserve Bank of India (RBI) to clamp down on Vijay Shekhar Sharma-led Paytm Payments Bank earlier this week, sources in the know said.

There were other concerns too, such as not maintaining arm’s length with promoter group One97 Communications Ltd (OCL), not disclosing payments to promoters, false submission of compliance, and an overall sense of complete disregard for compliance and transparency.

On Wednesday, the RBI had barred the payments bank from most operations, including taking deposits and fund transfers with effect from March 1,

Topics : Reserve Bank of India Paytm Money Paytm Payments Bank RBI Policy RBI Governor NBFCs Online payments KYC KYC norms KYC compliance Paytm founder Vijay Shekhar

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