Paytm payments bank stops enrolling new users after RBI concerns
Paytm stopped enrolling new customers on June 20 following an audit by the Reserve Bank of India, which made certain observations about the process the company follows in acquiring new customers and its adherence to know-your-customer (KYC) norms, sources said.
India’s largest payments bank Paytm has stopped enrolment of new customers on its platform following observations made by the banking regulator, four people with knowledge of the matter said.
Paytm stopped enrolling new customers on June 20 following an audit by the Reserve Bank of India (RBI), which made certain observations about the process the company follows in acquiring new customers and its adherence to know-your-customer (KYC) norms, three of the four people said, requesting anonymity.
“RBI has directed Paytm payments bank to stop onboarding of new customers with immediate effect,” said one of the four people. Another person, a company executive, said that Paytm is modifying its “account opening process to introduce ‘current accounts’ due to which new account creation process has been paused”.
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