News Brief

Paytm CEO Meets Finance Minister Sitharaman, RBI Officials Amid Regulatory Concerns: Here's All You Need To Know

Bhuvan Krishna

Feb 07, 2024, 11:41 AM | Updated 11:41 AM IST

Paytm founder and CEO Vijay Shekhar Sharma (File Photo) (Ramesh Pathania/Mint via Getty Images)
Paytm founder and CEO Vijay Shekhar Sharma (File Photo) (Ramesh Pathania/Mint via Getty Images)

Vijay Shekhar Sharma, founder and CEO of Paytm, met with Finance Minister Nirmala Sitharaman on Tuesday (6 February) .

Earlier, he had discussions with senior RBI officials on Monday.

This comes amid reports that the Directorate of Enforcement (ED) is reportedly considering launching a formal investigation into Paytm to examine issues highlighted by the Reserve Bank of India (RBI), according to a report from The Economic Times.

The ET report said that on 3 February, RBI had alerted the ED about potential breaches of anti-money laundering regulations and know-your-customer (KYC) norms at Paytm.

However, Paytm has maintained that neither the company nor its founder Sharma are currently under investigation by the Enforcement Directorate in connection with any allegations stemming from the RBI's report.

The company has issued a statement denying the existence of any impending ED probes into Paytm or its affiliate Paytm Payments Bank, based on an RBI report, deeming such claims as unfounded.

The company reaffirmed its commitment to compliance with Indian laws and emphasised its cooperation with regulatory authorities in the past.

According to a report from NDTV, when Paytm CEO Vijay Shekhar Sharma met with Finance Minister Nirmala Sitharaman yesterday, he was informed that the government has no involvement in the recent RBI restrictions.

During his meeting with the finance minister, Sharma reportedly outlined the company's stance regarding the regulatory issues raised in a brief discussion.

Sharma's meeting with Sitharaman was brief, lasting for about 10 minutes, during which he was advised that the government's role in the matter is limited. Instead, Paytm has been instructed to address the issue directly with the RBI and adhere to their regulatory guidelines.

The minister is said to have emphasised the importance of engaging with the RBI to address the identified non-compliance issues.

In discussions with the RBI, Sharma purportedly requested an extension beyond the 29 February deadline, outlined a transition plan, and detailed ongoing efforts to meet the regulator's compliance requirements.

Following the RBI's directive on 31 January instructing Paytm Payments Bank to cease all basic payment services across various platforms and technology infrastructures from 29 February onwards, Paytm convened a board meeting to discuss its ongoing collaboration with the regulator to address all concerns.

Bhuvan Krishna is Staff Writer at Swarajya.

Get Swarajya in your inbox.