After Airtel, Paytm Payments Bank Gets Into Trouble With RBI

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First, it was Airtel and Airtel Payments Bank that was banned from conducting eKYC of customers using Aadhaar. Now, the Reserve Bank of India (RBI) has cracked down on Paytm Payments Bank regarding the same. Airtel Payments Bank was finally permitted to onboard new customers only a month ago after a 10-month ban.

According to media reports, sources close to the situation claimed that Paytm Payments Bank stopped enrolling new customers on June 20 following an audit by the RBI, which made certain observations about the process the company follows in acquiring new customers and its adherence to know-your-customer (KYC) norms.

“The RBI has directed Paytm Payments Bank to stop onboarding of new customers with immediate effect,” said sources.

Another executive said that Paytm is modifying its “account opening process to introduce ‘current accounts’ due to which new account creation process has been paused.”

The report also claimed that Paytm was asked to remove Renu Satti as chief executive of the payments bank following the RBI’s objections about her ability to lead a banking services firm. The RBI mandates the incumbent of a CEO’s position at a payments bank to be a banker.

A Paytm spokesperson said told LiveMint, – “This is incorrect… Renu Satti’s appointment was made on 19th May 2017 vide an official approval from the RBI.”

Source: INC42

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