Paytm receives show cause notice from crime fighting agency
India’s Paytm received a show cause notice from India’s financial crime fighting agency on Saturday for allegedly violating the country’s Foreign Exchange Management Act.
The notice relates to violations relating to acquisition of two subsidiaries – Little Internet Private Limited and Nearbuy India Private Limited for the years 2015 to 2019, the company said in a statement.
The notice has no impact on its services to its consumers and merchants, Paytm added.
Paytm is India’s largest digital payments platform, founded in 2010 by Vijay Shekhar Sharma. Initially, it started as a prepaid mobile recharge platform, but later expanded to offer a wide range of services, including bill payments, online shopping, and money transfers.
Paytm allows users to create a digital wallet, which can be topped up using a credit/debit card, net banking, or cash. This digital wallet can then be used to make payments for various services, such as mobile recharges, utility bills, and online purchases. Paytm also offers a payment gateway for merchants, allowing them to accept digital payments from customers.
Today, Paytm is one of India’s most popular digital payment platforms, with over 300 million registered users. It has also expanded its services to include Paytm Payments Bank, which offers banking services, and Paytm Money, which offers investment services. Paytm has played a significant role in promoting digital payments in India and has been a key player in the country’s push towards a cashless economy
