Paytm Payments Bank has secured the green light from the Reserve Bank of India to enrol new customers after a six-month ban.
“PPBL has received a formal nod from the RBI to start onboarding new customers while resuming KYC for the bank as well as wallet customers starting from December 31, 2018,” the payments bank said.
The ban was imposed in June 2018 following the central bank’s audit, which offered certain observations about the payment bank’s KYC process.
Soon after the audit, Renu Satti stepped down as CEO of the payments bank. In October last year, Satish Gupta was named as the bank’s new managing director and CEO.
Paytm Payments Bank was launched in May last year. Plans are on to sign up 100 million new customers by the end of this year.
“PBBL is on a mission to facilitate the last-mile delivery of banking services to each and every Indian. It also envisions catalysing the digital adoption and acquainting more people with the touch-of-a-button experience,” Gupta noted.
Earlier, Airtel Payments Bank and Fino Payments Bank were also restricted from onboarding new customers.
The ban on Airtel stemmed from the revelation of the firm signing up customers without their consent.
In case of Fino, the ban was imposed due to the bank’s inability to adhere to the rules of deposit limit of INR100,000 ($1,425.82).
The restrictions on both the payment banks were later lifted.