MC Tech3 | ED knocks on Paytm's door; Ronnie Screwvala slams Byju's, investors; and more

One quick thing: Visa, Mastercard, banks meet RBI over corporate card transfer freeze

In today’s newsletter:

• Paytm Payments Bank now under ED scanner
• Ronnie Screwvala slams Byju's, investors?
• MC Impact: FIR filed against cabbie conning fliers

Paytm Payments Bank now under ED scanner

Paytm's woes continue as its banking arm, Paytm Payments Bank Ltd (PPBL), now faces scrutiny from the Enforcement Directorate.

Tell me more: After the Reserve Bank of India barred Paytm Payments Bank from doing any business activities, the ED is now probing the bank for potential charges of fund siphoning.

• The ED is also seeking details on overseas transactions from Paytm Payments Bank for preliminary examination.?

Catch up quick: On January 31, the RBI directed PPBL to cease accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29.

The central bank said a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

Also Read: MC Explainer on Can Paytm sustain its business model? A deep dive into how it operates and what-if scenarios

Taking stock: Following the central bank's directive, coupled with an ED probe, Paytm has seen a substantial decline of nearly 55% in its market value.?

• The company's shares plummeted by almost 10% today.?

Additionally, mutual funds have seemingly lost confidence in Paytm, as they have decided not to bottom-fish on Paytm stock.

"We have no idea what’s going on. It is difficult to predict anything and take a call on the investment horizon when the regulators are involved so strongly," the chief investment officer of a mid-sized asset management company said.?

In other fintech news: Payment solutions provider PayU has tied up with the NPCI to offer ‘Credit Lines on UPI’ feature on its platform.

• This will allow PayU merchants to accept UPI payments from customers through pre-sanctioned credit line.?

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