RBI Directs Paytm Payments Bank To Stop Enrolling New Customer

| August 1 , 2018 , 14:33 IST

The Reserve Bank of India (RBI) has directed Paytm to stop enrolling for new customers on its platform Paytm payments bank following an audit.

As per reports in media, Paytm had stopped enrolling new customers from June 20.

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.

RBI had also asked Paytm to have a better security mechanism to store the customer data and a separate office for Paytm Payments Bank.

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Subsequently, on the direction of RBI, the company shifted its Paytm Payments Bank office to Noida.  

RBI asked Paytm to remove its current chief executive of Paytm payments bank, Renu Satti as it wants a banker to hold the chief executive position.

Satti had stepped down from her position to take on a new role within the company.

However, a Paytm spokesperson said, “This is Incorrect as Renu Satti was appointed as chief executive on May 19, 2017, after getting the approval from the RBI.”

“The Company is modifying its account opening process to introduce current accounts due to which new account creation service has been paused,” he added.

Paytm Founder Vijay Shekhar Sharma owns 51 percent stakes in Paytm Payments Bank which is a separate entity of firm.