Paytm Payments Bank Limited does not undertake Outward Foreign Remittance, Paytm said. It was responding to a report that suggested an ED case against Paytm under FEMA violation. 
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Paytm Payments Bank Limited does not undertake Outward Foreign Remittance, Paytm said. It was responding to a report that suggested an ED case against Paytm under FEMA violation. Shares of One 97 Communications Ltd (Paytm) will be in focus on Thursday morning after the fintech major said it, along with 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.
Paytm said it provided the required information, documents and explanations to the authorities in the past and continued to provide such information, documents and explanations to the authorities as is being required by them. It, however, clarified that Paytm Payments Bank Limited does not undertake Outward Foreign Remittance.
It was responding to a report that suggested registration of a case by ED against Paytm under FEMA violation.
"We have always made and will continue to make disclosures with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," it said. Paytm shares closed 10 per cent lower at Rs 342.35 on Wednesday. The Paytm stock has lost 55 per cent of its market value since January 31, the day RBI put strict restrictions on Paytm Payments Bank.
A Times of India report suggested that senior executives of Paytm have appeared for questioning before ED in connection with alleged irregularities reported by RBI recently. Citing sources, the report suggested no serious issues had come to light. ED asked Paytm executives to come again with certain documents sought by the probe team, the report suggested.
RBI told Paytm Payments Bank to terminate the nodal account of Paytm and Paytm Payments Services Limited (PPSL) by February 29, 2024. Paytm and the payments bank are looking to move the nodal to other banks during this period. Paytm in a note to exchanges suggested it will pursue partnerships with various other banks, to offer various payment products to its customers. Axis Bank recently said it was willing to work will Paytm if the central bank allows it to do so.
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