The RBI had asked the bank to stop adding new customers about six months back in June, when a regulatory audit found lapses on the part of the entity to stick to RBI’s requirements.
Paytm Payments Bank has received the green light from the Reserve Bank of India to restart opening accounts for its customers. The bank intends to start Know Your Customer formalities for its wallets as well as its bank accounts from Dec 31.
Post the audit, Paytm Payments Bank had removed Renu Satti from the chief executive’s role and roped in veteran banker and ex-NPCI senior executive Satish Gupta for the corner office at the Noida-based bank.
“Paytm Payments Bank is on a mission to facilitate the last-mile delivery of banking services to every Indian. It also envisions catalysing the digital adoption and acquainting more people with the touch-of-a-button experience. believe it is going to help in the formalisation of our economy and bring about the much-needed real financial inclusion,” said Gupta. Further, he added that the bank currently has around 42 million accounts and has set a target of getting 100 million by the end of 2019.
Though the RBI had not released a statement clearing out the reason for their action, Times of India had reported that the regulator was not satisfied with the close relations that One97 Communications had with Paytm Payments Bank, and had also failed to maintain the net worth limit of Rs 100 crore.