1 month ago
The latest move is a result of the ongoing regulatory action against the payments bank by the RBI. On January 31, the RBI imposed major business restrictions on the Paytm payments bank citing a prolonged history of non-compliance by the Paytm promoters.
March 02, 2024 / 11:39 AM IST
On February 26, Vijay Shekhar Sharma resigned from the Board of Paytm Payments Bank to "enable the reconstitution of the board, OCL informed the bourses", a filing said. They are now in the process of appointing a new chairman.
Paytm gained over 3 percent on March 2, a day after the Financial Intelligence Unit-India imposed a penalty of Rs 5.49 crore on Paytm Payments Bank for violating money-laundering norms. At 9:59 am, at the end of the first session during the March 2 special trading session, the stock was at Rs 418.75
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In a statement, Paytm Payments Bank said, “The penalty pertains to issues within a business segment that was discontinued two years ago. Following that period, the bank has enhanced its monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU).” This announcement came after Paytm's board announced the discontinuation of several inter-company agreements with Paytm Payments Bank.
This is the latest move as a result of ongoing regulatory action against the payments bank by the Reserve Bank of India (RBI). On January 31, the RBI imposed major business restrictions on the Paytm payments bank citing a prolonged history of non-compliance by the Paytm promoters. These include violations such as KYC, and AML norms.
Also read: Paytm, PPBL mutually agree to discontinue various inter-company agreements
On February 26, Vijay Shekhar Sharma resigned from the Board of Paytm Payments Bank to "enable the reconstitution of the board, OCL informed the bourses", a filing said. The company is now in the process of appointing a new chairman.
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