Payment banks will get stuck one after the other..!? RBI warning..!?
Paytm Payments, a subsidiary of India's largest money transfer platform paytm, has been banned by the RBI since february 29 on a range of charges ranging from processing transactions in violation of bank norms to processing excessive amounts. In this situation, the enforcement department of paytm Payments bank is doing its investigation work. On the one hand, on the other hand, FIU BoTM, the finance ministry, is just a trailer, and it has thrown a new bombshell to see the payment banks that will get involved next.
The Financial Intelligence Unit (FIU) has found around 50,000 accounts operating without KYC verification. Not only this, it has also come to light that these accounts are involved in suspicious transactions and money laundering activities. It is predicted that excessive payment banks may data-face regulatory action like paytm Payments bank caught in RBI's net. Out of these 50,000 accounts, about 30,000 accounts are with payment banks other than paytm Payments Bank. The Financial Intelligence Unit (FIU) has already provided the details to the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI). It seems that the RBI has looked into this information, considered it, and asked for more information. If the matter is confirmed, many more payment banks are likely to data-face tougher regulatory action in RBI's grip. These 50000 accounts were found guilty of non-reporting of suspicious transactions, non-maintenance of valid user details of the wallet account, and registration of multiple users using the same Income Tax PAN number. The FIU is expected to send a detailed report on deficiencies affecting payments banks before march 31 along with additional information sought by the RBI. A senior government official told ED that out of the total reported by the FIU system, around 175,000 accounts were found to be non-compliant, out of which 50,000 accounts were involved in suspicious activities and used for money laundering. A senior government official said the FIU report on paytm Payments bank was given to the Reserve bank four months ago, and strict action has been taken against it. In paytm Payments bank, the RBI's crackdown is not just about KYC non-compliance, but also about regulatory violations at the bank. The FIU, the investigative arm of the finance ministry, is empowered to conduct investigations under the Prevention of Money Laundering Act (PMLA). Based on this, all financial institutions, including payment gateways, must report suspicious transactions to the government within a specified time frame. It is a basic function of every financial institution, it is noted that many banks have received fines for filing complaints. The main function of the Financial Intelligence Unit (FIU) is to analyze the information reported by the bank or financial institution and forward it to various investigative bodies the regulatory authorities like the Enforcement Directorate and the Reserve Bank.