New Delhi: Six months after being asked by the Reserve Bank of India (RBI) to stop adding new customers following audit observations by the banking regulator, Paytm Payments Bank has once again started opening new accounts following a clearance, according to a report.
Noida-based Paytm Payments Bank, a unit of One97 Communications Ltd, issued front page ads in national dailies today saying that, “India’s most sincere bank is here. Welcome 2019 with revolutionary banking of Paytm Payments Bank. Open your savings account today".
A report in The Economic Times said the payments bank has got the green signal from RBI to restart the account opening process. Paytm had stopped enrolling new customers from 20 June following an audit by RBI, which made certain observations about the process the company follows in acquiring new customers and its adherence to know your customer (KYC) norms.
RBI had also objected against having Renu Satti as the bank’s CEO after which she stepped down and Satish Kumar Gupta was appointed as its managing director and chief executive officer.
Under the new rules, as announced on its website, all Paytm Payments Bank account holders will have to complete KYC norms by visiting the nearest KYC point with either of the documents: voter Id card, driving license, passport or NREGA card.
Paytm Payments Bank offers zero balance accounts where you cannot keep more than ₹ 1 lakh. Account holders are also entitled to a free digital RuPay Debit Card and free digital transactions.
Valued at over $10 billion, Paytm Payments Bank had registered net loss of ₹ 20.7 crore for the fiscal ended 31 March 2018, according to regulatory documents. Its total loss stood at ₹ 30.7 crore during 22 August 2016 to 31 March 2017, the documents filed with the corporate affairs ministry showed.
Paytm founder Vijay Shekhar Sharma holds 51% share in Paytm Payments Bank, while the rest is held by One97 Communications.