RBI is considering regulatory action against multiple fintech firms, not just Paytm Payments Bank, due to KYC compliance issues. A Moneycontrol report suggests that a prominent payments aggregator and a wallet service provider are among those under scrutiny. Fintech firms operating in the unsecured loan segment, acting as intermediaries between customers and lenders, are particularly under pressure. Following compliance lapses in its KYC process, Paytm Payments Bank was barred from acquiring new customers by the RBI on January 31. Senior Paytm executives have reportedly been questioned by the Enforcement Directorate and have submitted documents in response to the RBI’s actions.
One97 Communications, operating financial services under the Paytm brand, and its banking arm, Paytm Payments Bank, have disclosed receiving notices and requests for customer-related information in an exchange filing. Paytm clarified that its associated entity, Paytm Payments Bank Limited, does not engage in outward foreign remittances.
“One 97 Communications Limited (OCL), its subsidiaries and its associate, Paytm Payments Bank Limited, have over time been receiving notices and requisition for information, documents and explanations from the authorities, including Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents and explanations to the authorities,” Paytm reportedly said in a regulatory filing.
