Paytm’s forex woes: Understanding the role of fintechs in cross-border payments

The Directorate of Enforcement (ED) is probing Paytm regarding forex violations by some of its merchants. In its response, Paytm has said it is not authorised by the central bank to deal in forex, and hence there is no question of violation. Who is authorised to deal in forex in India? What is the role of fintechs in this business, and where do banks stand? ETtech explains.