The problem for the fintech giant Paytm is far from over, as the media agency Reuters on Saturday reported that the Enforcement Directorate (ED) will investigate Paytm Payments Bank if it finds fresh allegations of a foundation.
Revenue Secretary Sanjay Malhotra told Reuters that if there are new allegations of money laundering against Paytm by RBI, these will be investigated by Enforcement Directorate as per the law of the country.
Paytm’s valuation crashed to $3.7 billion after it lost $2 billion on Mumbai stock exchanges this week. Since its 2021 IPO, which valued Paytm at around $20 billion, the stock is now down 75%, and analysts at JP Morgan say the company will now have to “restore credibility” to the business.
In a separate development, the State Bank of India Chairman, Dinesh Khara in an exclusive interaction with ETBFSI, on the Paytm crisis said that SBI is reaching out to Paytm customers through its subsidiary SBI payments.
Also Read: Paytm crisis: SBI chief Dinesh Khara says it will provide all support to merchants
“We will provide all the support to traders and offer QR scan code, POS machines etc so that the industry does not suffer in general,” he said.
Talking about the plan, Khara said, We may not take the investment in the Paytm as we will have to review all the balance sheets and valuation among other aspects.”
“But getting dealers is what we’re working on,” he said.
The Reserve Bank of India (RBI) on Wednesday ordered the payments banking unit of One 97 Communications, popularly known as Paytm, to stop accepting fresh deposits into its accounts or popular wallets from March.