Paytm Payments Bank that’s caught in the eye of the storm reportedly told the Enforcement Directorate that the question of violating Foreign Exchange Management Act (FEMA) does not arise as it does not possess the licence required for outward foreign remittances.
According to a report in The Economic Times, the federal agency wrote to the Reserve Bank of India (RBI) to verify the claim. Meanwhile, it is probing alleged violations of FEMA by entities using Paytm’s payments unit and recently received the additional data by RBI regarding the entities violating FEMA.
The agency has prima facie not found any FEMA violation by Paytm Payments Bank, sources told the daily. The company reiterated its stance that the AD-II licence was never issued by the RBI.
The ED asked RBI to provide details of the companies and individuals who may have violated FEMA norms on platforms other than Paytm Payments Bank.
Meanwhile, Institute of Chartered Accountants of India President Ranjeet Kumar Agarwal on Sunday said its financial reporting review board (FRRB) may deliberate on issues of the fintech firm in the near future.
“So far, we have not considered it (Paytm issue), but the board meeting of the FRRB will take place in the near future and it will consider appropriate action if required. So far, we have not decided anything as far as this matter is concerned,” ICAI President Ranjeet Kumar Agarwal said.