Fino Payments Bank Gets Nod From RBI To Resume Opening New Accounts

| October 24 , 2018 , 13:25 IST

The Reserve Bank of India (RBI) has allowed Fino Payments Bank to resume opening saving accounts, nearly three months after the RBI had imposed ban on it for breaching the norms, media reported on Wednesday.

The move of the RBI to give permission came after the Fino Payments Bank submitted the compliance report to the central bank.

Rishi Gupta, MD and CEO at Fino Payments Bank was quoted by FE as saying, “We have brought down all account balances to less than Rs 1 lakh. We have also brought in systems, processes and technology changes so that under no circumstance can the balance go beyond Rs 1 lakh.”

Also Read:RBI Directs Paytm Payments Bank To Stop Enrolling New Customer

The RBI had noticed that in some of the accounts deposits with Fino exceeded Rs 1 Lakh per account in a year. 

According to RBI’s guidelines for payments bank, a customer can make deposits of up to Rs 1 lakh per account in a year.

Gupta also said that in the last few months we have spent time on testing the systems and bringing them in line with the compliance framework prescribed by the RBI.

The RBI had not only imposed ban on Fino Payments Bank for breaching the norms as it had also directed Paytm to stop enrolling for new customers on its platform Paytm payments bank following an audit.

The Central Bank had concerns regarding the process followed by the company in acquiring the new customers and its adherence to know-your-customer (KYC) norms.