Paytm Payments Bank, the banking arm of India’s leading mobile-phone payment platform, has stopped enrollment of new customers on its platform after observations made by the Reserve Bank of India, Mint newspaper reports.
Paytm stopped enrolling new customers on June 20 after 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.
Paytm was also asked to remove Renu Satti as chief executive of the payments bank after RBI’s objections about her ability to lead a banking-services firm. The central bank requires a person to be a banker in order to become the chief executive of a payments bank, the daily said.
However, the company clarified that Satti had stepped down to take on a new role as chief operating officer of the new retail business at Paytm.
Paytm Payments Bank is a separate entity, with 51% owned by Vijay Shekhar Sharma and the rest held by One97 Communications. Its parent organization Paytm has China’s Alibaba and Japan’s SoftBank as major investors.