The company was last directed to stop onboarding new customers in 2022. However, it continued operations without making any operational changes for existing customers, including the strengthening of its KYC norms.
Paytm Payments Bank Ltd (PPBL) was last week ordered to halt much of its operations by February 29, and the Reserve Bank of India’s regulatory action could be more of a death blow than a slap on the wrist, people in the know told DH. It is learnt that the RBI has been keeping an eye on PPBL going back as far as 2017, soon after Paytm’s banking arm began operations.
Even in its press statement, the central bank highlighted that the company’s issues with non-compliance have been persistent. The company was last directed to stop onboarding new customers in 2022. However, it continued operations without making any operational changes for existing customers, including the strengthening of its KYC norms.
This could be the main factor behind the RBI now simply asking it to wind up operations without providing any clarity on how PPBL can make a turn around. Instead, the payment bank’s license will likely be revoked in the near future, reports indicate.