Know Why RBI Banned Paytm Payments Bank to Open New Accounts
It had been reported that RBI had banned Paytm’s payments bank from opening new accounts and e-wallets in August. Want to know why? We have the answer.
RBI for the first time has disclosed the reasons behind the move. The four reasons! The apex financial authority of India said that the Noida-based company was in violation of know-your-customer (KYC) rules while on-boarding users. These precise violations are not clear.
Secondly, it has also been stated that the RBI was also not contended with the close relations between Paytm founder Vijay Shekhar Sharma’s One97 Communications and the entity that runs Paytm Payments Bank (PPB).
The bank is owned 51% by Paytm owner, while the rest is owned by One97 Communications and its subsidiaries. The ...