This is the reason for paytm ban

This is the reason for paytm ban

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RBI has imposed strict restrictions on ‘Paytm Payments’ banking operations due to irregular KYC in the bank. There are reports of multi-crore money transfers being done by rules.

Sources familiar with the matter further said:

Reserve Bank took action against Paytm Bank over audit report. Irregular K.Y.C. This is due to the multi-crore cash transactions carried out by the rules. More than 1000 users have linked same PAN card number with their bank accounts,

This raised questions about illegal remittances. When the RBI and the auditors checked the same, it was found that the information submitted by the Paytm RBI was wrong in many places.

Suspicions were also raised about the non-disclosure of important intra-group and related-party transactions.

Morgan Stanley bought shares

US-based Morgan Stanley has bought the shares of Paytm’s parent company One 97 Communications for Rs 244 crore. With Paytm Bank facing crisis, it is said to have taken this as a good opportunity to buy shares. After the RBI’s announcement, the share price of Paytm has fallen by 36 percent in two days.

Paytm shares..

The RBI also found some irregularities in the management of Paytm Payments Bank based on its relationship with its parent company ‘One97 Communications’.

Transactions through the parent company also raised concerns about data protection. These were the basic reasons for the RBI’s action.

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