No law agency probe into Paytm as of now, says revenue secretary

Paytm Payments Bank has been barred by the RBI from accepting fresh deposits from February 29.

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26 Aug, 2025 12:21

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Law enforcement agencies will probe Paytm if needed but at the moment there is no such action afoot, revenue secretary Sanjay Malhotra has said, as the payments major finds itself in a regulatory firestorm.

"If there is any action to be taken, law enforcement agencies will take it. Right now there is nothing," Malhotra told Moneycontrol in an interview, as reports have emerged of a possible Enforcement Directorate probe.

While Malhotra acknowledged that news reports had been carried on the same "nothing of that sort" is currently happening.

"I only said that if there is something, they will take action. It doesn't mean anything (is happening)," he said on February 3.

Paytm has been under tremendous pressure after the Reserve Bank of India on January 31 directed its payments bank to stop accepting fresh deposits and making credit transactions after February 29.

Paytm Payments Bank has also been barred from accepting top-ups in any customer accounts, including prepaid instruments, wallets, FASTags, and NCMC cards.

The RBI said it was taking action against Paytm Payments Bank after the Comprehensive System Audit and compliance validation report of the external auditors revealed "persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action".

Since then, reports have also emerged that the RBI is considering cancelling the licence of Paytm Payments Bank as early as next month once depositors are safeguarded.

Paytm’s parent firm One97 Communications has denied the existence of any investigation by the Enforcement Directorate against Paytm, its associates, and the company's founder and CEO for money laundering activities.

Founder Vijay Shekhar Sharma said on February 1 that Paytm was in discussion with some of the banking partners to transfer the business of Paytm Payments Bank.

Also Read: Banks await RBI green light before partnering with Paytm to take over merchant accounts

"Many large banks have reached out to us offering support and we are overwhelmed. We will have to change our Virtual Payment Address (VPA) as we partner with other banks. The decision to change partner banks will happen in a few weeks. We are in discussion and these are yet to be completed," Sharma said, adding that the company was in talks with the RBI to solve issues concerning the bank's customers.

At 2 pm, the stock was locked in a 10 percent lower circuit at Rs 438.50 on the National Stock Exchange. The stock has tanked 42 percent in the last three sessions following the RBI action.