Paytm Receives Show Cause Notice Over Alleged FEMA Violations
Paytm faces a show cause notice over alleged FEMA violations linked to its acquisitions between 2015-2019. Services remain unaffected for users.
Indian digital payments giant Paytm is under regulatory scrutiny after the country’s financial crime agency issued a show cause notice over alleged violations of the Foreign Exchange Management Act (FEMA). The notice is linked to the company’s acquisition of two subsidiaries—Little Internet Private Limited and Nearbuy India Private Limited—between 2015 and 2019.
In response, Paytm stated that it is evaluating the matter with legal experts and will follow the necessary regulatory procedures to address the concerns. The company emphasized that the notice does not impact its services, ensuring that customers and merchants can continue using the platform without any disruptions.
This development comes at a time when Paytm is already under pressure from regulatory bodies, particularly after recent restrictions imposed on its banking operations. The company reassured stakeholders that it remains committed to compliance, governance, and maintaining transparency in all its dealings.
Users and investors are advised to stay informed about further updates, as regulatory decisions could have implications for Paytm’s operations and stock performance.
Also Read: Breaking News: RBI Places Limits on Paytm's Banking Operations
