(Bloomberg) -- India’s financial intelligence unit has imposed a 55 million rupees ($663,380) fine on Paytm’s banking affiliate.

The agency said in a statement that businesses involved in illegal activities, including “organizing and facilitating online gambling,” channeled the proceeds through bank accounts maintained by Paytm Payments Bank Ltd. 

“The penalty pertains to issues within a business segment that was discontinued two years ago,” a Paytm Payments Bank spokesperson said in a statement. “Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU).’

The Reserve Bank of India recently barred the bank from accepting fresh deposits in its customer accounts from March 15, triggering a rout in its shares. Paytm is still trading over 40% lower from the levels before the regulatory action.

The fine, though a fairly small amount, adds to troubles for Paytm at a time when it is trying to retain customer trust. The company earlier said it’s cutting back business ties with Paytm Payments Bank, seeking to appease regulators who are pursuing a cleaner distinction between the two. 

The digital-payments company’s billionaire founder Vijay Shekhar Sharma earlier this week resigned from the board of Paytm Payments Bank, in which he owns 51%. Paytm holds the rest. 

--With assistance from Sankalp Phartiyal.

(Updates throughout)

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