India, June 19 -- Paytm parent One97 Communications has reportedly filed a compounding application with the Reserve Bank of India to settle an ongoing case pertaining to alleged violations of the Foreign Exchange Management Act, after receiving a show cause notice from the Enforcement Directorate earlier this year.

An NDTV Profit report said that the fintech major has requested the ED to hold off on formal adjudication proceedings while the RBI reviews the application.

If permitted, the matter may be resolved by paying a penalty under the compounding process.

Compounding is a process where an entity voluntarily admits to a violation, accepts responsibility, and seeks to settle the matter by paying a monetary penalty, rather than underg...