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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

BS Web Team 

paytm

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

In an RTI reply, the RBI revealed the 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 founder Vijay Shekhar Sharma’s and the entity that runs (PPB).

While Sharma owns a 51% stake, the rest is owned by and its subsidiaries.

Payments banks are expected to maintain an arm’s length relationship with promoter group entities.

Following the RBI ban on opening new accounts and e-wallets, the bank’s then CEO Renu Satti resigned.

First Published: Thu, December 20 2018. 13:36 IST
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