Paytm violated KYC rules, RBI reveals reason for blocking payments bank biz

RBI revealed the payments bank failed to maintain the prescribed net worth limit of Rs 1 billion and the bank also violated the end-of-the-day Rs 100,000 limit per account

The Reserve Bank of India (RBI) has revealed that Paytm was in violation of know-your-customer (KYC) rules while on-boarding users for its payments bank business for which it was banned from opening new accounts and e-wallets in August, The Times of India reported.

In an RTI reply, the RBI revealed the payments bank failed to maintain the prescribed net worth limit of Rs 1 billion and also violated the end-of-the-day Rs 100,000 limit per account.

Payments banks are not allowed to hold more than Rs 100,000 in each account. 

The RBI also expressed unhappiness at the close relations between Paytm