Paytm Payments Bank case thousands of accounts opened on one PAN number

RBI has not imposed ban on Paytm Payments Bank just like that. Due to money laundering concerns and suspicious transactions worth hundreds of crores of rupees between Wallet Paytm and Paytm Payments Bank, action has been taken against the leading fintech company. PTI has given this information quoting sources. It is noteworthy that RBI has directed Paytm Payments Bank Limited not to deposit or top-up money in any customer account, wallet and Fastag after 29 February 2024.

According to the report, RBI said in a statement that this step has been taken after the audit report. The audit has revealed that rules were continuously ignored in Paytm Payments Bank. Two years ago, on March 11, 2022, RBI had stopped Paytm Payments Bank from adding new customers.

However, the Reserve Bank has clarified that Paytm Payments Bank customers can withdraw or use the money deposited in their savings account, current account, Fastag, National Common Mobility Card (NCMC) and other accounts.

It is noteworthy that Paytm is owned by One97 Communications, whereas Paytm Payments Bank Limited is a separate company, in which One97 Communications holds 49 percent stake.

Sources also revealed that Paytm Payments Bank Limited (PPBL) had lakhs of non-KYC (Know Your Customer) accounts and in thousands of cases, the same PAN was used to open multiple accounts. The audit has also revealed transactions worth crores of rupees, after which concerns related to money laundering have increased. According to media reports, ED may investigate in this matter.

Quoting an expert, it has been said that Paytm Payments Bank has about 35 crore e-wallets. Of these, about 31 crore are inactive. Only four crore e-wallets will be active, that too with very low deposits. Sources have been quoted as saying that there is a possibility of inactive accounts being used for fake accounts. There have been irregularities in KYC also.