ED starts a preliminary inquiry into Paytm Payments Bank: Reports

The Enforcement Directorate has commenced a preliminary inquiry into Paytm Payments Bank, as per a report by CNBC TV 18 that quotes sources.

This after the RBI on January 31st directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after 29 February due to non-compliance of regulations.

Meanwhile, Paytm told CNBC-TV18 that "We have always complied with the requirements dutifully by furnishing requisite information."

Earlier this month, Revenue Secretary Sanjay Malhotra told Reuters that ED would probe Paytm Payments Bank if any fresh charges of fund siphoning were found.

Paytm shares tank 10% to extend losses for second day

Shares of Paytm's parent company One97 Communications tanked 10 per cent on Wednesday after reports claimed that a preliminary inquiry has been started against subsidiary Paytm Payments Bank Ltd for alleged FEMA violations.

Falling for the second straight day, Paytm shares dived 10 per cent to settle at the lower circuit limit of Rs 342.15 apiece on the NSE.

On the BSE, shares of the crisis-hit fintech company tumbled 9.99 per cent to close at Rs 342.35 per piece. The stock also hit its 52-week low on both BSE and NSE.