Paytm: Networth company One 97 Communications (OCL) maintains prominence in the news following receipt of two show-cause notices regarding suspected breaches under Foreign Exchange Management Act (FEMA) 1999.
One 97 Communications through reports submitted to financial exchanges explained that two show-cause notices pertained to the company with associated investments in Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL) for total transactions amounting to ₹611.17 crore.
Two show-cause notifications issued under FEMA were received by both current and past directors combined with executive members of the company as per the announcement.
One 97 stated that the challenged financial transactions occurred between 2015 and 2019 despite LIPL and NIPL not being its subsidiaries. The largest portion of suspicious transactions identified by regulators amounts to over ₹344.99 crore through LIPL whereas OCL contributed over ₹245.20 crore.
One 97 remains unaffected since the notices lacked any specified demand or penalty provision.
To follow legal and regulatory procedures appropriately the Company has acquired necessary expert legal counsel while evaluating suitable courses of action for resolution according to disclosed information from OCL.
In all business operations Paytm maintains complete transparency alongside which it follows stringent governance measures and compliance standards. The authorities aim to solve this issue through enforcement of suitable regulations and legal requirements. The matter does not affect Paytm services toward consumers and merchants since all operations stay fully operational along with continued security of services.
RBI reprimands Paytm Payments Bank
The Reserve Bank of India (RBI) executed restrictions on Paytm Payments Bank when it required the bank to discontinue new customer acquisitions during February 2024. The central bank ordered both an IT audit firm appointment and system audit procedure for the company.
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