PAYTM PAYMENTS BANK FINED FOR BREAKING RULES: WHAT HAPPENED? - VORAKA

ORIGINALLY PUBLISHED IN VORAKA

Article Published on 02 March 2024 by Gloria Poletti | www.vorakamag.com

Paytm Payments Bank, a popular banking service, is in trouble for not following the rules. India's Financial Intelligence Unit has given them a fine of Rs 5.49 crore (which is a lot of money!) because they didn't do a good job of preventing money laundering.

Money from illegal activities, like online gambling, was going through Paytm Payments Bank accounts. The government got concerned and started checking into it after getting information from law enforcement.

The bank says the problems are from a part of their business that they stopped doing two years ago. They also mention that since then, they have improved how they keep an eye on things and report to the Financial Intelligence Unit.

The Reserve Bank of India, another important authority, had told Paytm Payments Bank to stop most services by March 15. This happened after Paytm decided to cut down its connections with the bank to make regulators happy. The idea is to make a clearer separation between the two parts of the business.

This situation is part of Paytm's efforts to follow the rules better and show that the bank and the main Paytm company are separate. It's like they're trying to keep things more organized and follow the guidelines set by the authorities.