RBI Orders Paytm Payments Bank to Stop Enrolling New Customers
Following observations made by the Reserve Bank of India, Paytm Payments Bank has ceased the enrolment of new customers on its platform. This happened on 20th June post audit by RBI, which made particular observations about the procedure the company follows in taking over new customers and its adherence to know-your-customer (KYC) norms.
Along with this, Paytm was also recently told to remove Renu Satti as the CEO of the payments bank, where the Reserve Bank of India raised objections about her ability to lead a banking services firm. RBI wants that a banker should run the payments bank.
“RBI has directed Paytm Payments Bank to stop onboarding of new customers with immediate effect,” said a person familiar to the matter. Another person, a company executive, said that Paytm is modifying...