Paytm Payments Bank gets RBI permit to add new customers; targets 100 Mn account by 2019

After a gap of five months, the new year brings some good news for Paytm as Reserve Bank of India has allowed the company's payments bank arm to add new customers.

According to Paytm Payments Bank (PPB) spokesperson, the company has got permission to start KYC formalities for its wallet and bank accounts from December 31, 2018.

Back in August, RBI had barred PPB to onboard new customers following the violation of guidelines set by the banking regulator for all payments banks operating in India.

The reason behind the ban also came in light after an RTI revealed that PPB failed to adhere Rs 100 crore net worth limit, violated KYC rule and did not follow the norms of not holding more than Rs 1 lakh in each account.

Besides, the banking watchdog was also not happy with the ownership structure between Paytm and its payments bank arm. All payments banks are expected to maintain a certain distance – independent operational structures – from the promoter entities.

Meanwhile, the company had removed Renu Satti from the position of the CEO and appointed Satish Kumar Gupta as the new CEO, however, it also not helped PPB to get back into the action.

Now, PPB claims to have over 42 million bank account and further aims to achieve 100 million bank accounts by the end of 2019.

In the latest financial report, PPB also had an edge over other payments banks operating in the country. The company's revenue took a leap to reach the figure of Rs 729.1 crore in FY18.

PPB incurred Rs 20.7 crore loss during the same period.

Apart from Paytm, Airtel payments bank and Fino Payments Bank also faced similar wrath from RBI. Now all payments banks operating in the country are in compliance with the regulator.

The development was reported by ET.