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Paytm Payments Bank: No License for Foreign Remittances

Paytm Payments Bank responds to ED, stating it lacks the license for outward foreign remittances, negating any FEMA breach.

Paytm Payments Bank has informed the Enforcement Directorate (ED) that it lacks the necessary license for outward foreign remittances, negating any breach of the Foreign Exchange Management Act (FEMA).

Investigation and Data Acquisition

The ED, investigating potential FEMA violations involving entities using Paytm Payments Bank, has obtained additional data from the Reserve Bank of India (RBI) for entities allegedly contravening FEMA through Paytm Payments Bank.

Lack of Prima Facie Evidence

After reviewing the RBI-provided data, the ED has not found any prima facie evidence of FEMA violations by Paytm Payments Bank. Additionally, the agency has requested information from the central bank on entities breaching FEMA regulations on other mobile payment platforms.

Regulatory Developments and Response

Following RBI directives, Paytm Payments Bank stated it does not engage in outward foreign remittance. The bank is complying with notices from various authorities and has been addressing challenges since RBI's prohibition on deposits, credit transactions, and banking services.

Extension and Advisement

The RBI extended the deadline for stopping certain banking services to March 15 but maintained the February 29 deadline for terminating nodal accounts maintained by Paytm Payments Bank. The RBI also advised the NPCI to assess Paytm's request to become a third-party application provider for UPI payments.