Categories: Analysis

Paytm Business Bank has been fined over money laundering allegations

Paytm’s banking business has been fined 55 million rupees (about $663,000) by an Indian regulator over money laundering allegations.

The country’s Financial Intelligence Unit said it imposed the fine after an audit of Paytm Payments Bank found that companies involved in illegal activities, including online gambling, had routed funds through accounts with the unit.

Paytm Payments Bank says the penalty “relates to issues within a business unit that was discontinued two years ago” and that it has since strengthened its monitoring systems.

The fine comes as Paytm Payments Bank is under audit by the Reserve Bank of India. The division was placed under strict restrictions by the RBI due to compliance issues, causing the parent company’s share price to skyrocket.

Paytm has now moved to terminate “various cross-company agreements” with the commercial bank to reassure the central bank and the market.

David Brooks

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