Reserve Bank of India has removed the restriction on opening a new account in Paytm Payments Bank. This stoppage on Paytm was related to violation of Know Your Customer (KYC) Rules. After the withdrawal, Paytm will now be able to open an account for its payment bank and e-wallet, although the company will have to follow the rules of Know Your Customer (KYC) for this.
In its investigation, the RBI had caught a violation in the KYC for new customers added by Paytm. After the audit, the RBI had stopped the Paytm payments bank from adding new customers from June 20.
Recently, Renu Sati resigned as the Chief Executive Officer of Paytm Payments Bank. RBI has instructed that a banker may be the head of the Paytm payments Bank, but ignoring it, Paytm made Renu Sati as CEO while Renu Sati was the first employee of the Human Resources Department of Mother Dairy and Manpower Service.
It is worth mentioning that Paytm received approval in August 2015 for opening the payment bank. Subsequently, it started duly in the country in November 2017. It was found in the investigation that Paytm was also opening a current account on his payment bank.