Hundreds of accounts created on Paytm Payments Bank without proper identification were one of the major reasons for the Reserve Bank of India to impose stringent curbs on the company, people familiar with the matter said. These accounts with inadequate Know-Your-Customer (KYC) conducted transactions worth crores of rupees on the platform, leading to fears of potential money laundering.

More than 1,000 users were found to have linked the same Permanent Account Number (PAN) to their accounts. The compliance submitted by the bank was found to be incorrect during verification processes conducted by both the RBI and auditors.

RBI is concerned that some of the accounts could have been used for money laundering, sources said. As well as informing the Enforcement Directorate, the RBI has sent its findings to the ministry of home affairs and the prime minister’s office.

The Enforcement Directorate will probe Paytm Payments Bank if any evidence of illegal activity is found, Revenue Secretary Sanjay Malhotra told Reuters.

There were also reports of non-disclosure of major transactions within the group and associated parties, further intensifying regulatory worries. The central bank’s scrutiny also unearthed loopholes in the governance standards, particularly in the linkage between Paytm Payments Bank and its parent company, One97 Communications Ltd.

Transactions routed through the parent app of Paytm raised data privacy concerns, leading to the RBI’s decision to halt transactions through Paytm Payments Bank. While user deposits in savings accounts, wallets, FASTags, and NCMC accounts are not immediately affected, the company will have to rely on third-party banks for its operations until February 29.

Following the RBI’s notice, Paytm stock experienced a sharp decline, plummeting 36% over two days and wiping $2 billion off its market value.

Paytm founder Vijay Shekhar Sharma dismissed the regulatory actions as a “speed bump” during a conference call with analysts, aiming to reassure stakeholders amid the ongoing turbulence.

The media’s question on why a woman sarpanch’s brother-in-law was representing her at a Samajwadi Party event drew a sharp response from party chief Akhilesh Yadav. Asked why the sarpanch was not present and her brother-in-law was filling in for her, Mr Yadav had a counter question: “Why are all of you (reporters) male?”

The exchange took place at an event to distribute laptops among students who had performed well in exams. The event was being held at the Belhara panchayat area in Uttar Pradesh’s Barabanki district. The organiser was local sarpanch Shabana Khatun, but she was missing. What’s more, her name was not on the hoardings either. Instead, her brother-in-law Ayaz Khan was present. It was his photograph on the posters, with “chairman” written next to him.

The Belhara panchayat seat is reserved for women. In the last polls, Ms Khathun was elected from there. But local residents say she never attends any panchayat event. It is her brother-in-law who takes all decisions of the panchayat, local residents say. Official documents are sent to the sarpanch’s home to be signed.

In fact, in several such reserved seats, husbands and other male relatives of woman sarpanches are known to be the de-facto sarpanch and the elected women do little more than sign documents.

At the event, a group of reporters asked Mr Yadav how a male relative representing a woman sarpanch can send a message of women empowerment. “Is this anything new? So many pradhanpatis (husbands of pradhans) are here. If this even a topic? Now, if I ask, why are all of you (reporters) male?” Mr Yadav replied to cheers from his supporters.

He then asked one of the reporters if there was no woman reporter in his channel who could have been sent for the event. “Send someone else then,” Mr Yadav said with a smile, adding, “I am only replying to your question.”

The Uttar Pradesh Anti-Terrorism Squad (ATS) has arrested an employee of the Indian Embassy in Moscow, Russia, on charges of spying for Pakistan’s intelligence agency, ISI. The arrested individual, identified as Satendra Siwal, was working as a Multi Tasking Staff (MTS) in the Ministry of External Affairs.

The operation unfolded as ATS received intelligence from confidential sources suggesting that ISI handlers were enticing Indian Ministry of External Affairs employees, offering financial incentives in exchange for sensitive information related to the Indian Army. The information being obtained posed a grave threat to India’s internal and external security.

Satendra Siwal, a resident of Shahmahiuddinpur village in Hapur, was identified as a key player in this espionage network. He was allegedly extracting confidential documents by exploiting his position within the Indian Embassy in Moscow. The accused, motivated by greed for money, allegedly passed critical information concerning the strategic activities of the Ministry of Defence, Ministry of External Affairs, and Indian military establishments to ISI handlers.

Following extensive intelligence gathering and surveillance, Satendra Siwal was summoned to the ATS Field Unit in Meerut for interrogation. During questioning, he reportedly failed to provide satisfactory answers, eventually confessing to his involvement in spy activities. Satendra Siwal has been working as an India Based Security Assistant (IBSA) at the Indian Embassy in Moscow since 2021.