Paytm Penalized for Continued Non-Compliance Despite Granted Grace Period

Action against Paytm was for "persisted non-compliance", adequate time was given for corrective actions, said RBI Deputy Governor Swaminathan. RBI has put curbs on Paytm Payments Bank for accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more from February 29 onwards. Paytm on Wednesday in a fresh statement denied it was being probed by the central agencies. “We have consistently assured that neither Paytm nor any of its associates are under investigation by any regulatory agency. This stance has been further validated by recent statements from senior government officials. Our commitment remains unwavering towards operating in compliance with regulatory guidance and continuously enhancing our processes to further the reach of digital payments across India,” the statement added.

Paytm's founder and chief executive officer Vijay Shekhar Sharma had met finance minister Nirmala Sitharaman. However, the fintech CEO was told by the minister that it was a regulatory issue and the government cannot help the company with.Sharma also met the officials of the Reserve Bank of India, which refused to grant any concessions to the payments gateway including the migration of accounts to other banks and the extension of February 29 deadline. Paytm share price was nearly six per cent down in the open after closing in positive on Wednesday. On the Sensex, the shares of Paytm were trading at ₹469.90 after hitting a day high of ₹524. The shares of One97 Communications Ltd, the parent company of Paytm, had soared 10 per cent. The share price slump comes amid the crisis faced by the fintech firm after the Reserve Bank of India barred Paytm Payments Bank from accepting new deposits after February 29.