In June last year, the Reserve Bank of India directed Paytm Payments Bank to stop opening new accounts and e-wallets after it found that the company violated KYC norms.
The Reserve Bank of India (RBI) has given its approval to Paytm Payments Bank Ltd, which is co-owned by One97 Communications and Vijay Shekhar Sharma, to restart its know your customers (KYC) process as well as open fresh accounts. In June last year, the central bank directed Paytm Payments Bank to stop opening new accounts and e-wallets, after an audit in which the banking regulator observed that the company violated KYC norms.
“PPBL has received a formal nod from the RBI to start onboarding new customers while resuming KYC for the bank as well as wallet customers starting from December 31, 2018,” Paytm Payments Bank said in the statement. According to the payment bank, the potential customers can now open their savings or current account with the bank.
According to the norms for payment banks, individuals and businesses can deposit up to Rs 1 lakh per account. Payment banks also offer other banking services like Debit Cards, Online Banking and Mobile Banking. Account holders are also entitled to a free digital RuPay Debit Card and free digital transactions. However, these banks cannot offer financial products of their own, but partner with other banks.
Soon after the RBI’s ban, the chief executive officer of the company, Renu Satti, stepped down from her position and took on the role of heading Paytm’s retail initiative. Thereafter, veteran banker Satish Gupta was appointed as the new managing director and CEO in October. Satish Kumar Gupta’s appointment is the third CEO appointment at the Bank in two years after Shinjini Kumar left in May 2017.
Paytm Payments Bank, which commenced operations in 2017, is looking to acquire about 100 million new customers by the end of this year. Majority equity stake in the company is held by Paytm founder Vijay Shekhar Sharma, while the rest is with Alibaba-backed One97 Communications.
“PBBL is on a mission to facilitate the last-mile delivery of banking services to each and every Indian. It also envisions catalysing the digital adoption and acquainting more people with the touch-of-a-button experience,” Gupta said.