Gurgaon, Feb. 15 -- Paytm Bank, which was already under pressure from the RBI earlier this year, is under further scrutiny after the Enforcement Directorate (ED) opened an investigation into it. This decision shines a light on the financial behemoth's future and raises questions about the overall viability of the Indian fintech scene. The development comes two weeks after the Reserve Bank of India (RBI) directed Paytm's banking unit to close. Paytm, however, has not publicly confirmed the development.

From regulatory action to criminal investigations In February 2024, the RBI put significant limitations on Paytm Bank, citing "persistent supervisory concerns." This included stopping new customer onboarding, reducing credit availability, a...