Paytm Affiliate Penalized: One97 Stocks Dip Amidst FIU Scrutiny

In a special trading session on Saturday, March 2, shares of One97 Communications, the parent company of Paytm, faced pressure after the Financial Intelligence Unit (FIU) levied a penalty of Rs 5.49 crore on Paytm Payments Bank for violations in reporting illegal money transactions.

“The FIU initiated a review of Paytm Payments Bank after information from law enforcement agencies about some entities engaged in illegal acts,” including online gambling, the statement said. 

As a result of the penalty, One97 stocks closed 2.6 percent lower at Rs 414.6 apiece on the BSE. The penalty was imposed due to violations in reporting illegal money routed through the bank’s accounts. The FIU’s action underscores the importance of compliance and reporting in the digital payments sector. Despite the setback, Paytm remains a prominent player in India’s digital payments landscape. The penalty highlights the regulatory challenges faced by fintech companies operating in India’s dynamic market. 

Paytm Payments Bank, as an associate entity of One97 Communications, faces scrutiny amidst allegations of facilitating illegal activities. The penalty serves as a reminder for financial institutions to adhere to strict reporting standards to combat illegal transactions effectively. The incident underscores the need for robust oversight and compliance mechanisms within the digital payments ecosystem.